Housing policy peak National Shelter has challenged the Federal Government to be bold in the face of pressure from vested interests and not squander the chance to reform the tax treatment of housing.
Responding to reports on a key speech the Treasurer Scott Morrison is due to make this morning, National Shelter spokesperson Adrian Pisarski said that there is no evidence that curbing the excessive generosity of tax concessions will raise rents.
“The Treasurer is right to focus on renters but derelict in not considering adjustments to tax concessions for “mum and dad" investors,” Mr Pisarski said.
“There is no evidence that curbing the excessive generosity of tax concessions will raise rents.
“In fact, there are so many frustrated would-be owners clogging up the rental market and putting upward pressure on rents.
“Our rental affordability index records that there is virtually no affordable rents for low income households and that Sydney has unaffordable rent across the board. There are substantial levels of rental stress across all major Australian cities and in many regional areas.
"Negative Gearing and Capital Gains Tax discounts do no favours for renters.”
Instead National Shelter calls for a national plan led by the Commonwealth.
"We welcome the discussions on a bond aggregator but believe we need a national plan to coordinate all governments to lift investment in social and affordable housing, change our tax mix, including stamp duties, lift the game of our planning systems and eliminate our waiting lists and growing homelessness.”
"Only the Commonwealth can lead a national strategy and we hope the budget will also introduce measures we can all build on to help develop a national plan to address our housing affordability crisis."
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