There is no quick fix for housing affordability, and changes to negative gearing arrangements will not increase supply or reduce run-away stamp duties.
Last week, Property Council National President and Managing Director of Stockland Mark Steinert said any future tax reform, including policy review of Capital Gains Tax concessions and negative gearing, could only be considered as part of across-the-board tax reform where everything is on the table.
Mr Steinert reaffirmed the Property Council position on negative gearing saying that wholesale changes or the removal of negative gearing would be detrimental to economic stability and the financial security of all Australians who own their own home, have an investment property or plan to invest in the future.
The key to addressing housing affordability is supply, Steinert said – and this can be driven by improving efficiencies in planning and infrastructure delivery.
Property Council chief executive Ken Morrison agrees, arguing that the Turnbull Government must focus on weaknesses in supply and undertake meaningful reform of state taxes to ease housing affordability.
“We are facing the consequences of nearly a decade of undersupply. State governments need to fix the planning blockages and cut the red tape that are limiting the number of homes able to be built each year,” he says.
A Federal Incentives Model for Housing Supply, prepared by Deloitte Access Economics, found incentive payments, previously used to boost competition in the 1990s, could address housing affordability.
A national competition payments framework could also create $3 billion in economic uplift.
CFMG’s key investment strategy with residential land with proximity to a capital city or other major employment hubs and with proximity to transport networks and existing and/or planned education, recreation, retail and health amenities is supported by industry feedback that economic growth be driven by continuing to support residential housing with decisions on key economic change.
Source: Property Council of Australia