The best thing that can be said about it is that it is a genuine solution, unlike the ALP’s negative gearing and capital gains tax proposals.
Our brand new housing affordability index reveals that even though the latest available ABS figures (December 2018) show a drop of 2.4% in average house prices in the last quarter of last year, houses were actually 1.2% less affordable at the same time
Labor's two-pronged housing affordability package has them rowing the same boat in both directions, expending a lot of taxpayer dollars and going nowhere.
Labor populism under Bill Shorten and Sally McManus, if they deliver on their promises, will make the economy inflexible and weak.
Labor's problem is this. If abolishing negative gearing is to improve housing affordability it has to decrease prices. But if it decreases prices it decreases the savings of all home owners.
We the undersigned call on all political parties and candidates contesting this state election to commit to run campaigns which address the key issues for Queensland’s future.
Recent political debate on housing affordability has been conducted in a fact-free vacuum. Home owners receive more from the tax system than investors.
The inability of Labor’s Treasury Spokesman, Chris Bowen, to explain how Labor’s new housing “affordability” policies could decrease house prices shows it is not about affordability at all.
If the aim of federal government policies is to increase affordability without decreasing house prices, then there is only one solution – allowing potential purchasers access to all their savings, including superannuation.
The analysis by the majority is fundamentally sound, and avoids the mistake of thinking that housing affordability can be fixed by introducing more Commonwealth Government regulation and tax. But it misses the real problem for first home buyers, which is the deposit gap.