ACOSS, Everybody's Home, Better Renting and National Shelter are calling on the Federal Parliament to swiftly pass the vital housing tax reforms announced in the Budget.
These long overdue changes to negative gearing and the capital gains discount will make a real difference to improve fairness and level the playing field in our housing and tax systems.
Right now investors are buying twice as many properties as first-time buyers. These reforms will remove the unfair tax breaks that give investors a huge advantage over people who just want a home to live in. They will help reverse the stark decline in home ownership over the past 10 years.
The changes will also improve housing stability for renters by encouraging long term investment over short term gains.
The current housing investor tax concessions mainly benefit the wealthiest 10 per cent who own two thirds of the value of investment property. At a time when the community is under increasing pressure, we need to make sure reforms raise revenue fairly to end the social housing shortfall and invest in the essential supports we all rely on.
ACOSS Executive Director of Policy and Research Jacqueline Phillips said:
"For a quarter of a century, these tax breaks have supercharged inequality, driven up housing prices, and added little to rental supply. Only 1 in 8 investor loans are for new construction, while the remainder push home prices higher. Home prices have risen 3 times more than wages since the CGT discount began.
"The government should be given credit for tackling the hard issues rather than kicking the can down the road, and shifting to a fairer tax and housing system where the purpose of housing is for living, not for accumulating wealth. We call on all politicians to back the reforms that are clearly in the national interest."
Everybody's Home National Spokesperson Maiy Azize said:
"Winding back investor tax breaks is a huge win for housing fairness. These changes help level the playing field for everyday Australians who just want to live in a safe, stable home.
"Rents have been surging for years partly because investor tax breaks have been fuelling the housing crisis. The idea that we should be doing more of the same is an insult to the intelligence of renters across the country.
"It is dishonest for the property lobby to run a scare campaign and spread misinformation about reforms that will not even affect existing landlords. The property lobby is talking up rent rises now because sticking with the status quo suits them.
"There is no excuse for landlords to hike rents because of these changes. Existing landlords get to keep these tax perks. Any attempt to use these reforms as a justification for raising rents is opportunistic profiteering.
"We urge all politicians to see through the fearmongering and back these long overdue changes."
National Shelter CEO Jackson Hills said:
"Claims these changes will drive rent increases are often overstated and risk distracting from the real structural issues in our housing system. For too long, our tax settings have skewed investment toward existing properties rather than building new homes. That has fuelled price growth, widened inequality, increased housing stress, and locked too many Australians out of home ownership.
"Rents are primarily driven by supply and demand. The pressure being felt by people who rent is driven by tight vacancy rates, population growth and insufficient new supply, not by reforms that haven't even been legislated yet.
"These reforms are about fairness, making sure tax concessions (a form of public subsidy) are better targeted and actually deliver more homes where Australians need them most, not simply inflating the value of existing assets far beyond average incomes. The biggest risk now is not to reform. Maintaining the status quo will continue to drive inequality and housing stress. These changes are an important step toward a fairer, more functional system that works for more Australians.
"In addition to this tax reform, sustained long-term investment in public, social and affordable housing is essential to address structural shortages and deliver a fairer, more secure housing system.
"We urge Parliament to pass these reforms to help create a fairer housing system and improve access to secure, affordable homes for all Australians."
Better Renting CEO Angela Cartwright said:
"The Budget commitments to wind back the capital gains tax discount and negative gearing are an essential step needed to reset the rental housing system. By encouraging long-term, responsible investment by landlords committed to providing rental housing, these tax reforms will contribute to improving stability for the one-third of households who rent.
"To maximise the benefits of these bold tax reforms for renters, the Federal Government will need to fund more public and social housing, to provide stable housing for renters who can't afford private rents and improve affordability across the private rental market. We also need this Government to lead state and territory governments to deliver greater protections for renters against unaffordable rent hikes and eviction, and strong standards for rental homes."
