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
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).
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.