OneHomeEach.org

Policies

Modular apartment block build in 9 days (Big River Architectural)

Overview

  • Scrap (or limit) tax breaks for speculators owning residential housing.
  • Use the savings to fund new apartments and public housing.

Apartments to be created by redeveloping low-quality commercial sites in our major cities.

Tax changes

Proof that the CGT discount caused dwelling prices to outstrip wages growth.
  • Remove (or cap) Negative gearing and the Capital Gains Tax Discount on residential property.
  • Add a developer subsidy for creating new housing (drip fed for each stage of construction)
  • Negative gearing and the CGT discount cost about $B17 per annum. The measures above save enough money to directly fund apartment creation and much more public housing.
  • Allow residential property investors to move their funds to super tax free – if they do it within a year of CGT being abolished.
  • The exit of speculators from the residential property market and the creation of new housing allows first home buyers into the market.

Supply isn’t the main issue

There are 11.2 million dwellings for 10.7 million households, but a third of households are renting.

A quarter of Australia’s property investments held by 1% of taxpayers.

Over the last ten years:

  • Population growth was 16%
  • The number of dwellings increased by 19%
  • House prices rose 75%

So there are enough homes for everyone, the problem is distribution.

SMSF changes

Separately Managed Super Funds should not be allowed to hold direct residential property.

Bad ideas

We oppose schemes that push up demand without increasing supply:

  • “Letting” people use their super – which will force everyone to use up their Super and will push up property prices. 🔗
  • “First Home Buyer” schemes – which just push up property prices. 🔗
  • “5% deposit” and “shared equity” schemes – these just push up prices.
  • Allowing further low-density urban sprawl over farmland in areas with no amenities.

References

  1. Who benefits from negative gearing (PDF, Australia Institute)
  2. IMF says scrap GGT discount
  3. The awful truth at the heart of Australian housing policy (Greg Jericho, Guardian)
  4. Roundtable was a rare chance for reform. Instead we got small ideas (Australia Institute)
  5. House prices to climb as expanded first home buyer scheme kicks off (ABC)