A national alliance of community housing and welfare groups says it’s time get serious about reforming negative gearing and the capital gains tax discount and put housing affordability front and centre of this federal election campaign.
The alliance –made up of Homelessness Australia (HA), National Shelter, the Community Housing Industry Association (CHIA) and the Australian Council of Social Service (ACOSS) – asks all Australians to sign a petition calling for tax reforms that put ordinary people ahead of the interests of investors.
“Australia is in the midst of a housing crisis and current tax policy has fuelled Australian housing prices to record and unaffordable levels,” said ACOSS CEO Dr Cassandra Goldie.
“Tax settings that encourage speculative investment and inflate house prices – like negative gearing and the capital gains tax discount – must be addressed in a new national strategy to address housing affordability.”
These unfair tax concessions, through negative gearing and the tax break for capital gains, cost the federal budget more than $7 billion every year.
Over half of these tax breaks go to investors in the top 10% of income earners. People who negatively gear claim an average loss of $8,722 per year.
This means funding for essential services such as education, health and dedicated housing for low income families are reduced.
Spending savings should be redirected to improve affordability, including a tax rebate for new affordable housing, and significantly increased investment in public and community housing.
“ACOSS stands with the community in insisting that governments do all that they can to ensure everyone pays their fair share of tax to enable us to fund our services properly into the future and to help end the housing crisis that is pushing people into financial hardship,” said Dr Goldie.
By signing the Vote Home petition, Australians can call on party leaders to change unfair tax concessions and unlock affordable housing for all.
To Vote Home, go to: