SLOMO CONFIRMS COALITION GIVING UP ON A GENERATION OF YOUNG FIRST HOME BUYERS

10 Apr 2017

The great Australian dream is turning into the great Australian nightmare on Malcolm Turnbull's watch.

SLOMO CONFIRMS COALITION GIVING UP ON A GENERATION OF YOUNG FIRST HOME BUYERS

The great Australian dream is turning into the great Australian nightmare on Malcolm Turnbull's watch.  

The Treasurer’s speech today is nothing short of a disgrace.

Scott Morrison’s speech today confirms that the Turnbull Government is turning its back on a generation of young Australians who have been locked out of the housing market.

And what is worse, the Liberal Party has completely tied itself up in political knots on negative gearing, to the point it can no longer act, and so is left pursuing really bad public policy ideas like early access to superannuation for housing – an idea Malcolm Turnbull has labelled “a thoroughly bad idea” and Mathias Cormann has strongly opposed as recently as last month.

Let’s be clear, a package that doesn’t include reforms to negative gearing and the capital gains discount is nothing but a con.

As we were reminded by last week’s ABC Freedom of Information request, last February the Treasurer was developing changes to negative gearing before he and the Prime Minister got rolled by the Cabinet.

Today, Mr Morrison is left with a tired and old scare campaign on negative gearing and rents, arguments that have been comprehensively debunked by economists like Saul Eslake and the Grattan Institute’s John Daley.

The bottom line is reforming negative gearing will give young people the chance get out of the rental market and buy their own home.

Embarrassingly, Mr Morrison quotes Saul Eslake’s AIST report in his speech for evidence of the problems of reduced home ownership but ignores his number one recommendation – reforming negative gearing and/or the capital gains tax discount!

Mr Morrison talks about the need for a concessional savings vehicle for first home buyers, but his Government abolished first home saver accounts.

Mr Morrison talks about the need to assist seniors to downsize their home, but his Government abolished a Labor program that did just that.

Mr Morrison cries crocodile tears for renters, but his Government abolished the National Rental Affordability Scheme.

Mr Morrison says supply is the key, but his Government abolished the National Housing Supply Council.

Of course we need to look at issues like supply, but the housing affordability crisis won't be solved without addressing the unsustainable tax breaks for property investors.

MONDAY, 10 APRIL 2017