With property investor tax breaks costing billions every year, making housing more expensive and hindering productivity, Everybody’s Home is urging the government’s economic reform roundtable to make housing tax reform a top priority.
The national housing campaign’s submission to the roundtable, closing today, highlights the urgent need to reform negative gearing and the capital gains tax discount to boost productivity and repair the federal budget.
Investor tax concessions are expected to cost the budget more than $180 billion over the next decade while disproportionately benefiting high-income earners and driving up housing prices.
Everybody’s Home urges the roundtable to consider:
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Abolishing negative gearing and phasing out the capital gains tax discount
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Funding a sustained pipeline of public and community housing.
It comes amid growing calls from politicians, economists, and think tanks for the government to reform the capital gains tax discount on housing.
Everybody’s Home spokesperson Maiy Azizie said: “It doesn’t make sense that we are losing billions of dollars every year through tax concessions that most benefit high-income earners, while everybody else is being pushed out of the housing market. Tax breaks for investors are widening the wealth inequality gap and pushing up the cost of housing for everybody else.
“Without reform, these tax breaks will cost more than $180 billion over the next decade. Abolishing unfair tax breaks would not only improve the budget bottom line, but also boost more productive investments that will actually fix our crisis: more social housing.
“We need a workforce that is mobile, healthy and supported through a safe, stable home - but Australia’s housing system is acting as a handbrake on productivity. Investor tax breaks are working against more productive investments like innovation, business expansion, or new housing supply.
“Every dollar invested in solutions that will fix the housing crisis boosts productivity in our country. Young people in unstable housing are abandoning study, regional employers are struggling to attract workers due to a lack of affordable homes, and parents are forced into long commutes because of housing cost pressures. All of that is hurting workforce participation and increasing stress.
“This is about creating a system that benefits everyone. It’s encouraging to see more and more politicians, economists and think tanks calling for a rethink on these unfair investor tax breaks.
“Every dollar invested in social housing boosts economic activity and creates jobs. We need bold action to tackle inequality while building a fairer and productive Australia. The government must tackle the real drivers of the housing crisis and build a future where everyone can afford a place to call home.”
Contact details:
Sofie Wainwright: 0403 920 301
Lauren Ferri: 0422 581 506