A fresh survey of 2,158 workers conducted by Unions NSW reveals widespread support among workers to reform concessions like negative gearing and capital gains tax on housing.
- More than seven in ten (72%) of respondents supported reducing negative gearing tax concessions;
- Two thirds (66%) backed reducing capital gains tax concessions on investment properties; and
- More than eight in ten (81%) supported reducing capital gains tax concessions for properties over $3 million.
Support for reducing negative gearing tax concessions was particularly high among certain groups:
- Workers over 65 (82% support)
- Renters (80% support)
- Young people (18-24: 79% support, 25-34: 77% support)
- Those on incomes under $48,000 (79% support)
Significantly, 85% of respondents said it was unfair that first-home buyers have to compete with investors who have multiple investment properties using tax concessions like negative gearing. This sentiment was even more pronounced among young people and renters, with 93% noting this unfairness.
"The housing market in Australia is fundamentally broken," Unions NSW Secretary Mark Morey said. It's currently easier to buy your 10th property than it is to buy your first. Under these conditions, essential workers earning low to middle incomes don't stand a chance in the auction room.
"Fortunately, it's entirely within the government's power to turn this situation around and create a housing market that works for all Australians—not just a wealthy few property investors.
"Reforming negative gearing and capital gains tax concessions would improve affordability and enable more Australians to buy their first home. But they would also deliver profound savings to the Government which could be earmarked to expand the Housing Australia Future Fund so we can expand the supply of affordable housing and put further downward pressure on rents.
"We need to attack this problem from every angle. This includes expanding supply, cutting back hand outs to investors with multiple properties, and delivering more affordable housing to bring down rents so people have the chance to build some economic security."
The peak body argues these reforms would address the current inequities in the housing market while still maintaining opportunities for investment. "Every working person deserves the opportunity to own a home for themselves and their family," Morey said. "But our broken housing system means securing a moderately priced rental is the new Australian dream.
"First-home buyers have effectively been kicked out of the market in favour of wealthy investors. It's time to address the inequities that are distorting our housing system so more Australians can get a fair share."
