The Greens today announced that action on negative gearing and Capital Gains Tax discount reform will be a priority for the party in a potential minority government.
Property Council Chief Executive Mike Zorbas said changes to negative gearing are a distraction from supply-side policies that genuinely tackle the housing crisis, like planning, zoning and last-mile infrastructure reforms.
"The next Australian Government will need a laser focus on both supply and market confidence," Mr Zorbas said.
"We are in the middle of a housing crisis, and the only way to get out of it is to build more homes.
"Tampering with negative gearing will only lower the supply of new homes.
"We have a big housing gap across Australia and previous modelling shows that changes would widen it.
"Over the next twelve months individuals and institutions will be looking for leaders who give them the greatest possible certainty of investment in new supply.
"Serious housing policy needs to tackle the myriad pressures in the housing market from labour shortages, high construction costs, complex tax regimes and lengthy planning systems against the backdrop of unusual global uncertainty," he said.
Government taxes and charges make up more than 30 per cent of the cost of a new home. Future changes to Australia's tax settings need to be considered as part of a wider set of reforms designed to boost the efficiency of our economy and the supply of new homes.
