Labor lays tangible groundwork for higher housing taxes

After almost four years in government, Labor has collapsed housing supply in Australia from an average of 200,000 per annum to just 170,000 a year. 

In these years they have deployed a number of damaging gimmicks. These include the Housing Australia Future Fund, the reckless 5% deposit scheme and Build to Rent programme for their mates.

After two and a half days of hearings, it is clear Labor is eyeing another housing gimmick by pretending that tweaking the Capital Gains Tax discount will solve the housing crisis. 

Government Senators are clearly laying the serious groundwork for Mr Chalmers to raise taxes in the May Budget by asking questions about implementation of higher taxing models of CGT. 

The problem with this tax tweak is that it won’t solve the housing crisis. It will be another gimmick. Australia already has some of the world’s highest taxes. Taxes, fees, and charges, stamp duties, and delays already add up to 50% to the cost of a new home. 

Serious questions remain on the impact of tax changes on housing supply, the lived reality of very high levels of tax on investor supplied housing, the unstated agenda to replace mum and dad investors with institutions and the illusory budget "improvement".

Everyone knows that the government won’t solve the housing crisis unless they focus on supply but tinkering with the CGT discount is a dead end. It won’t build a single new dwelling. 

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Media Contact | David Nouri | 0401 392 624

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