Tuesday, 11 October 2016
I, and also on behalf of Senator Cameron, move:
That the Senate—
(a) notes that:
(i) Australian dwellings increased in price by 10 per cent in 2015-16, indicating a clear national housing affordability crisis, with Sydney prices increasing by 13 per cent and Melbourne by 13.9 per cent, and
(ii) significant causes of these price increases include distortionary negative gearing and capital gains tax discount policies; and
(b) calls on the Federal Government to significantly reform negative gearing and the capital gains tax discount to ensure housing is more affordable for first home buyers.
The government does not support this motion. By far, the majority of those who negatively gear properties are middle-income Australians. The government believes negative gearing gives people like nurses, teachers, police and emergency service workers a chance to get ahead and provide for their future. Many factors affect housing affordability. One of the key drivers is the supply of land and housing. The states and territories hold the major levers to improving housing supply, through removing regulatory impediments imposed by planning, land use and housing infrastructure policies. We will continue to work with the states and territories to improve the responsiveness of housing supply.