Commentary
Australia has an acute housing crisis. Mortgage repayments are at record levels of unaffordability, measured by the ability to pay, and the national rental vacancy factor is only 0.8 percent.
Government moves to increase taxes on superannuation and uncertainty over whether they will or will not apply capital gains tax to the family home are likely to make the crisis worse. The government needs to stabilise the situation by affirming that it will not alter any tax arrangements.
While the treasurer has now ruled out imposing a capital gains tax (CGT), he has been silent on another area that Labor has traditionally targeted for adjustment—negative gearing….