Change that could put 296k homes up for sale
Written by admin on October 17, 2024
Negative gearing and capital gains tax reforms proposed by Labor at the 2019 election would have allowed nearly 750,000 new homeowners to enter the housing market, a new report shows.
The analysis, conducted by the independent Parliamentary Library and commissioned by the Greens, found the policies put forward by former Labor leader Bill Shorten would have injected 296,902 new owner-occupier homes into the market.
As a result of investors being less incentivised to purchase homes, the new homes would provide dwellings for 774,955 people, which the Greens argue would be mostly renters currently locked out of the housing market.
The research was based on 2023 modelling by the NSW Treasury, which calculated the negative gearing and capital gains benefit reductions would reduce the average holding period on an investment home and inturn boost owner-occupied homes by 4.7 per cent.
Green’s housing spokesman Max Chandler-Mather reissued pleas for Labor to reconsider the paring back the tax benefits, in exchange for the safe passage of the government’s shared-equity Help To Buy Bill, which remains blocked in the Senate.
“Millions are suffering through this devastating housing crisis and all the Greens are
suggesting is Labor stop giving billions of dollars to wealthy property investors and instead
start making meaningful change to the lives of those doing it tough,” he said.
He also took aim at Anthony Albanese’s recent purchase of a $4.3m Central Coast mansion, and said the interests of investors were being prioritised over renters looking to get on the housing ladder.
“People like the Prime Minister and Peter Dutton had the chance to buy an affordable home
in the 90s when they were young, and all the Greens are pushing for is meaningful reform
that ensures the next generation gets that same chance,” he said.
“When 75 per cent of Labor and 65 per cent of Liberal MPs own investment properties, and keep voting in favour of policies which benefit their portfolios but lock hundreds of thousands of renters out of home ownership, it’s no wonder people are furious.”
On Thursday, senior government ministers again dismissed suggestions Labor would make any changes to negative gearing.
Rumours intensified following reports in The Australian Labor MPs have been pushing for the change, with Treasury also tasked with modelling the potential impacts of the tax concessions.
However Deputy Prime Minister Richard Marles said the government’s stance remains the same.
“That’s been made manifestly clear and none of that has changed,” he told Sky News.
Environment Minister Tanya Plibersek also ruled out any reform measures.
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“We’ve got $32bn worth of housing policies,” she said.
“We’ve already announced the first 14,000 out of the Housing Australia Future Fund to be built.
“That could have happened a lot sooner if the Liberals and Nationals hadn’t voted against it and the Greens hadn’t delayed it for a year.”
