As Interest rates stay the same, the real story of housing affordability is tax
Today’s interest rate decision is a sigh of relief for people with a mortgage, but doesn’t help those striving to buy a home.
Interest rates are only part of the picture when it comes to making housing more affordable.
I wrote an opinion piece for ABC’s The Drum on the failings of our tax system when it comes to housing. To read it click here
The Federal Government’s tax summit kicks off in Canberra this week, but a failure to address the tax incentives that drive up house prices will condemn future generations to high housing costs and financial insecurity.
The top issue at the tax summit ought to be the issue of tax deductibility of housing investment losses and the inflationary impacts that tax loopholes have on the housing market.
Today we have welcomed the Federal Government’s announcement of an expert panel to advise on improving the social housing system.
This is a very positive step towards delivering a housing system that works for everyone and we look forward to the expert panel coming up with solutions to get more people in to affordable housing.
Figures from the ATO confirm that tax breaks for housing are out of control with investors claiming $30 billion in rental losses, including millions on travel, stationery and ‘sundry’ expenses.
The high cost of housing is having repercussions for households across the housing spectrum. Reports of cash strapped households sharing to split the financial load is a worrying trend as households try to cope with high housing costs. (“Families stay put to save” Herald Sun 27/09/11).
On Monday, we released the analysis ‘Australia’s broken housing system’ [linked], revealing that housing costs are not only the biggest cost to household budgets, but also the fastest rising. Housing costs have increased an average of 55% over the last six years.
Calls to cut stamp duty are not the whole answer to tax reform, said Australians for Affordable Housing (AAH) today.
AAH Spokesperson Sarah Toohey said that more comprehensive tax reform is required to really improve housing affordability for all.
Australians for Affordable Housing (AAH) was launched today at Parliament House to challenge Australian governments to address housing affordability – the single biggest cost of living issue facing Australians.
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