Billions of dollars in tax breaks that push up house prices and lock people out of a home must be wound back to tackle the housing crisis and productivity, a group of housing sector advocates, economists, and union leaders have urged the government.
In a letter to the Prime Minister and Treasurer, the group has called for negative gearing and the capital gains tax (CGT) discount to be on the table at this week’s economic reform roundtable, with savings to be invested in building public and community housing.
The letter has been signed by Everybody’s Home national spokesperson Maiy Azize, ACOSS CEO Dr Cassandra Goldie AO, The Australia Institute Chief Economist Dr Greg Jericho, and ACTU Secretary Sally McManus.
Negative gearing and the capital gains tax discount are locking Australians out of secure, affordable homes. Reforming these would:
- Reduce inequality and rebalance the housing market
- Redirect billions into building new public and community housing
- Improve productivity by diverting capital to more productive uses.
Everybody’s Home national spokesperson Maiy Azize said: “Every year, billions of taxpayer dollars are handed to property investors through negative gearing and the capital gains tax discount, with everyday Australians paying the price.