Skip to content
Property Real Estate, Taxation

Scrapping investor handouts could fund half a million social homes and bring down housing costs

Everybody's Home 2 mins read

Amidst a historic cost-of-living crisis, Everybody's Home is calling on the federal government to scrap tax concessions for property investors and build social housing across Australia.


The call follows the campaign's release of Written Off, a report showing that housing affordability has crashed because the government is subsidising the private market instead of directly building homes. 


The report shows:

  • The budget is expected to lose almost a quarter of a trillion dollars (~$228 billion) to negative gearing and capital gains tax concessions between 2010-33

  • The cost of investor tax breaks over the next decade could build more than half a million (549,301) social homes

  • Tax breaks for investors have outstripped federal spending on social housing by at least five times

  • In 1982, the government spent about $164 per person on public and community housing. By 2022, that number shrunk to $61.


Everybody’s Home spokesperson Maiy Azize said: “In the midst of a major cost-of-living crisis, the federal government is spending record amounts on housing to line the pockets of investors. That has made renting and buying homes more expensive than ever.


“Tax handouts for investors will be a quarter of a trillion dollar mistake if the government doesn’t change tack. Giving money to investors is a choice. If the government wants to make housing more affordable and fairer for all Australians, it can choose to put money into homes instead of investor profits. 


“The government must scrap negative gearing and capital gains tax concessions, and use the revenue savings to build hundreds of thousands of social homes. This would help end Australia’s massive social housing shortfall, and help reach the goal of another one million social homes within the next 20 years. 


“Federal governments have walked away from supplying social housing. Instead they have prioritised the profits of property investors, pushed up the cost of housing, and made wealth inequality worse. 


“The government must take action to make housing affordable. We’re calling on them to use this week’s talks to abolish unfair tax handouts and build the homes we need.”



To show how much support is going into the private rental market, we have created a hypothetical scenario based on average figures.


Jane is a pensioner who rents from a private landlord. She has been on a waiting list for social housing for six years. 


She receives the full rate of Commonwealth Rent Assistance (CRA), $184.80 per fortnight. Like half of all CRA recipients, she remains in rental stress after getting the payment.


The total cost of CRA payments to Jane will be $4,804.80 over the year.


Jane's landlord Michael claims negative gearing tax deductions each year. He will receive a benefit of $13,810 from these deductions in 2023-24. 


When he sells his investment, he will be eligible for a Capital Gains Tax discount. That discount is worth $10,200 for 2023-24.


This year, Jane's home and Michael's investment is expected to cost the federal budget $28,814.80 in direct payments and forgone revenue.


Media contact: Sofie Wainwright 0403 920 301

More from this category

  • Property Real Estate
  • 12/07/2024
  • 09:55

Openn Pty Ltd, Openn Tech Ltd, and Openn World Ltd (collectively “Openn”) are proud to announce a new ownership team with a strong background in Australian property and technology. Led by Neil Rose of Tribar Capital, the investment group includes the

With Kalajzich and Lam's expertise in transforming legacy industries with technology, Openn is poised for an exciting evolution. Mark Kalajzich elaborates, "Openn's dedication to empowering real estate agents aligns perfectly with our vision. Openn has always delivered and will continue to deliver outstanding outcomes for home buyers and sellers. We are equally excited about developing strong value for agents, solving pain points in property transactions is our number one priority. Having grown Lendi to become Australia’s number one online home loan platform, we're eager to contribute our experience and support the outstanding Openn team to achieve similar success, particularly in…

  • Political, Property Real Estate
  • 12/07/2024
  • 07:56
Everybody's Home

New figures underscore urgent need to boost social housing growth

Everybody’s Home is urging the government to rapidly step up its efforts to ease the housing crisis, as new figures reveal the stubbornly slow growth and low proportion of social housing in Australia. New Australian Institute of Health and Welfaredata shows the proportion of households living in social housing is shrinking - dropping from 4.7 percent in 2013 to 4.1 percent in 2023. Meanwhile, the number of social homes grew by just 2,870 between June 2022 and June 2023 - all while more than 184,000 households officially sat on a waitlist. Everybody’s Home spokesperson Maiy Azize said the glacial pace…

  • Finance Investment, Taxation
  • 11/07/2024
  • 09:09
Tax Practitioners Board

New Code Determination lifts professional standards for tax practitioners

A new Ministerial power to expand the obligations in the Code of Professional Conduct (Code) was introduced to enable a swift response to any emerging or existing risks in tax practitioner behaviours and practices. This strengthens the regulatory framework and is consistent with the Government’s announcement in August 2023 to crack down on misconduct and rebuild confidence in the systems and structures that keep our tax system strong. From 1 August 2024 tax practitioners will need to comply with 8 additional obligations that will supplement the existing obligations under the Code. These new obligations reinforce public trust and confidence in…

  • Contains:

Media Outreach made fast, easy, simple.

Feature your press release on Medianet's News Hub every time you distribute with Medianet. Pay per release or save with a subscription.