ACOSS has welcomed Labor’s announcement of a $10 billion investment to increase housing supply and called for a significant further investment in social and affordable housing.
“We welcome the scale of Labor’s commitment and the recognition that new housing supply must be part of the solution,” said ACOSS CEO Dr Cassandra Goldie.
“We must also significantly boost investment in social and affordable rental housing to meet need. The objective must be secure housing for all, not just boosting home ownership for some.”
ACOSS strongly opposes the Coalition’s policy to make mortgage interest tax-deductible for first home buyers purchasing new homes.
“This policy will likely inflate home prices and increase household debt. It will worsen inequality, providing greater benefit to people on higher incomes, while doing little to help people on low and modest incomes who are locked out of the housing market,” Dr Goldie said.
“It’s also a risky and less reliable supply strategy, as it depends heavily on volatile market conditions like interest rates and buyer demand, unlike direct public investment which delivers more certain outcomes.”
Dr Goldie also raised caution about the expansion of the Home Guarantee Scheme, proposed by both major parties.
“Expanding demand-side schemes like the Home Guarantee Scheme without a major increase in supply is likely a recipe for higher house prices, especially as interest rates fall. These measures do little to support renters or people on the lowest incomes, who are facing the most severe housing stress,” she said.
ACOSS is calling for a bolder national strategy to tackle the housing crisis, including reform of tax settings that currently fuel speculative property investment.
“Instead of tinkering with people’s tax returns, we need proper tax reform that includes curbing negative gearing and capital gains tax concessions that drive up home prices and inequality.
“We must urgently scale up social and affordable rental housing, so that everyone, no matter their income, has access to a safe, secure, and affordable home.”
Contact details:
Charlie Moore: 0452 606 171