National housing campaign Everybody's Home is encouraged by reports the Albanese Government is leaning towards scrapping the capital gains tax discount on property and returning to the pre-1999 system.
Media reports today suggest Treasurer Jim Chalmers is considering returning to the original way of taxing capital gains on homes instead of reducing the current 50 per cent discount on capital gains.
Everybody's Home spokesperson Maiy Azize said the move would be a turning point for housing affordability and fairness.
"Scrapping the CGT discount would be one of the most positive steps any government has taken on housing in a generation," Ms Azize said.
"We are really encouraged by media reports that the federal government is looking to end the CGT discount and return to a much fairer system.
"The CGT discount and negative gearing are fuelling the housing crisis. Billions of taxpayer dollars line the pockets of property investors every year while first home buyers are locked out and renters are stretched to breaking point.
"The government continues to say it wants to improve intergenerational equity and the housing crisis, so it makes sense to cut the property investor tax breaks that are making both of these things worse, and use the savings to build homes that are affordable.
"The property lobby will cry that scrapping investor tax breaks will push up prices and choke supply. But they have a vested interest to resist reforms that would make housing more affordable.
"Australians aren't buying the property lobby's spin. They know investor tax breaks are unfair and make the housing crisis worse. Australians tell us every day how desperate they have become: renters pushed to the edge, first home buyers locked out, parents who are worried about their kids' futures, and even landlords who know the system is cooked.
"This is a once-in-a-generation chance to make housing fairer for all Australians. We, alongside millions of Australians, are urging the government to take it."
