The Greens have secured a Senate inquiry into the capital gains tax (CGT) discount, exposing one of the most regressive tax breaks in Australia's system which is inflating house prices by incentivising speculative investment in property.
A separate Senate inquiry by the Greens will examine intergenerational housing inequality in Australia, including tax settings, rental and homelessness policies, and public housing investment. It will investigate solutions for tackling intergenerational housing inequality to address the widening gap between current and future generations.
The housing inquiry will commence at the conclusion of the CGT inquiry in mid March.
As stated by Greens Economic Justice Spokesperson Senator Nick McKim:
"The CGT discount is the most unfair and unequal tax break in the entire Commonwealth tax code which is supercharging house prices and locking first homebuyers out.
"PBO analysis commissioned by the Greens show that 50% of the benefits of the CGT discount go to the richest 1% of income earners. This unfair tax break is fuelling the housing crisis by turbocharging speculative investment while locking renters and young people out of home ownership.
"This inquiry will shine a light on how the CGT discount has supercharged inequality, funnelled money away from productive investment, and turned homes into financial assets instead of places of shelter and community.
"The Albanese Government said reforming the original Stage 3 tax cuts was impossible, until they weren't.
"The CGT discount is orders of magnitude more unfair than the original Stage 3 tax cuts, and it's long past time for it to be reformed.
"The Greens will use this inquiry to make the case for fairness: that someone who goes to work every day to earn a living should not be subsidising tax breaks for property speculators."
As stated by Greens spokesperson for housing and homelessness Senator Barbara Pocock:
"We don't have a functioning housing system in Australia; we have a generational lottery, where young people are staring down the barrel of lifelong renting, precarious leases, and a housing market rigged against them. Housing should not be an intergenerational tug-of-war.
"In Australia, we're seeing declining rates of home ownership among young people, increasing rental security and affordability, and rising rates of homelessness. With house prices forecast to increase by 9 percent next year on top of more than 6% this year, which will only fuel the housing crisis.
"An inquiry into our housing crisis is a matter of urgency. This inquiry will investigate the causes of Australia's intergenerational housing inequality, including the $181m tax breaks for wealthy investors - the capital gains tax discount and negative gearing - that are locking out first home buyers and forcing rents to skyrocket.
"Australia's housing crisis cannot be solved unless we tackle intergenerational inequality. We need solutions to get young people, first home buyers and renters access to affordable and secure housing."
