The Senate inquiry report into the capital gains tax discount adds to mounting evidence that the investor tax break is making Australia’s housing crisis worse, with social housing advocates warning the federal government can not afford to delay reform.
The report handed down on Tuesday highlighted that the CGT discount, in combination with negative gearing, is driving up home prices and worsening inequality, while foregoing much-needed revenue that could fund social housing.
The report also included warnings against grandfathering and carving out exclusions for different assets in the reforms, which would worsen inequity and weaken the impact on housing affordability.
Last month, Everybody’s Home analysis of organisation submissions to the inquiry found more than seven in 10 want the investor tax break to be abolished or reformed.
Around half of all organisation submissions supported or raised the idea of redirecting the billions in savings toward building affordable rentals.
Everybody’s Home, Australian Council of Social Service, Tenants’ Union of NSW and Better Renting said appetite for tax reform is growing and the government has no excuse not to act.
The groups are urging the government to wind back the capital gains tax discount and negative gearing, and use the billions in savings to build more public and community housing.







