Unions NSW has thrown its help behind reform of the adverse gearing and capital positive factors tax concessions, arguing that the housing market is “fundamentally broken”.
The Unions NSW secretary, Mark Morey, is now calling on the Albanese authorities to reform the tax concessions and reinvest “profound savings” in housing, akin to by increasing the Housing Australia Future Fund.
The height physique for unions in New South Wales performed a survey of two,158 staff in October which discovered 72% needed to scale back adverse gearing tax concessions and two-thirds (66%) backed decreasing capital positive factors tax concessions on funding properties.
Though the outcomes usually are not essentially consultant as a result of respondents self-selected to reply, the union survey comes on the heels of a Guardian Important ballot discovering half the citizens in favour of reforming adverse gearing, with simply 16% opposed.
The union survey discovered help for reforming adverse gearing was notably excessive amongst staff over 65 (82% help), renters (80%), these on incomes beneath $48,000 (79%) and younger individuals aged 18 to 24 (79%) and 25 to 34 (77%).
Morey mentioned: “It’s currently easier to buy your 10th property than it is to buy your first.
“Under these conditions, essential workers earning low to middle incomes don’t stand a chance in an auction,” he advised Guardian Australia.
Morey mentioned it was “within the government’s power to turn this situation around and create a housing market that works for all Australians – not just a wealthy few property investors”.
“Reforming negative gearing and capital gains tax concessions would improve affordability and enable more Australians to buy their first home.”
Consultants say Australia is within the midst of a housing disaster with rents rising by 16.4% and new dwelling prices up 36.2% over the 2 years to June 2024, throughout which era wages grew by simply 10.7%.
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Morey mentioned the issue of housing affordability have to be attacked “from every angle” together with “expanding supply, cutting back handouts to investors with multiple properties, and delivering more affordable housing to bring down rents so people have the chance to build some economic security”.
“Every working person deserves the opportunity to own a home for themselves and their family,” Morey mentioned. “But our broken housing system means securing a moderately priced rental is the new Australian dream.
“First-home buyers have effectively been kicked out of the market in favour of wealthy investors. It’s time to address the inequities that are distorting our housing system so more Australians can get a fair share.”
The Greens and the Senate crossbench have been urging the federal government to reform adverse gearing and capital positive factors tax, however Labor has refused to make use of the reforms as a bargaining chip to cross its Assist to Purchase shared fairness scheme.
However, in September the federal government confirmed stories that treasury is conducting modelling on reform choices, prompting a number of Labor MPs to sign they might be open to reforms.
The Greens welcomed the information as proof Labor was “cracking under pressure from the Greens, renters and first-home buyers”.
In April senators David Pocock and Jacqui Lambie launch parliamentary funds workplace recommendation on 5 choices to reform housing taxes.
Essentially the most expansive possibility – abolishing adverse gearing, grandfathering the 50% capital positive factors tax low cost to properties purchased earlier than 1 July 2024, and limiting it to new properties constructed after that date – would save $9.9bn over 4 years.
Below the least expansive possibility – limiting adverse gearing to 1 property and disallowing the deduction for vacant properties, and halving the capital positive factors tax low cost to 25% for brand new houses constructed after 1 July 2024 – would save $642m over 4 years and $15.7bn over the last decade.
