Many members of the Coalition are calling on the government to tackle Australia’s housing affordability crisis, with many recommending a comprehensive and apolitical debate that includes negative gearing.
With the government incentivising investors to buy unlimited numbers of properties while houses prices on the east coast continue their dizzying ascent, the losers in this scenario are first-home buyers. According to a new report from Bankwest, current conditions have made it increasingly difficult for first-home buyers to enter the property market in most Aussie capital cities.
From the electorate’s point of view, Labor’s election pitch to reduce negative gearing is the only serious government policy that can effectively combat plummeting housing affordability.
In an interview last Friday on radio 3AW, Malcolm Turnbull repeated his election stance that the only way to improve housing affordability was to increase housing supply.
But as detractors have increasingly pointed out, new supply has been coming into the market in record numbers while affordability continues to deteriorate.
Sydney Liberal MP John Alexander, who chaired a government inquiry into homeownership and opportunities for tax reform, told The Australian there needs to be a debate on negative gearing to ensure that the government is employing the best policies.
Alexander proposes that tax concessions be adjusted rather than eliminated completely.
“It is not saying negative gearing is in or out, it is saying that it’s a very dynamic tool that could be very finely calibrated," he said.
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