It’s time for the prime minister to step up and rule out tinkering with the housing market and get on with the job of creating more supply. In particular he must rule out any changes to negative gearing.
Tagged: Negative gearing
Retirement income and savings policies could be deciding factors in this coming federal election. Forty-eight per cent of the seats in parliament have a median voter age of 50 years or older.
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'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.
Abolishing negative gearing is sold as a solution to housing affordability, but if it does nothing to reduce the price of houses, then it does nothing to solve affordability. Yet proponents of negative gearing continually tell us it will not affect house prices at all.
The fact they were over-claiming savings was confirmed by external modelling of the policy done by ALP think tank, the McKell Institute, the ANU, and since by the Parliamentary Budget Office.
Chris Bowen claims Australian property "concessions" are the highest in the world, getting it wrong twice in the same sentence.
This analysis shows the major issue with housing affordability is the time it takes to save a deposit, not negative gearing, and that mortgage repayments themselves are quite affordable by the standards of the last 23 years.
One of our best economic commentators makes fundamental errors about negative gearing, the ABCC and housing prices.
This morning Bill Shorten admitted on ABC Radio’s AM program that Labor’s negative gearing policy would not achieve its headline goal as a “Positive Plan to Help Housing Affordability”.