TURNBULL GOVERNMENT MAKING EXCUSES ON HOUSING AFFORDABILITY

3 May 2017

Another day, another excuse from the Turnbull Government on housing affordability. Today’s excuse is that a concessional loan facility for State infrastructure projects will solve the housing affordability crisis.

Another day, another excuse from the Turnbull Government on housing affordability. Today’s excuse is that a concessional loan facility for State infrastructure projects will solve the housing affordability crisis.                                             

As is the case with their other thought bubbles and excuses, even their own side are sceptical.

John Alexander MP, the former chair of the Government’s inquiry into housing affordability has said that pouring money into infrastructure while over-generous tax concessions remain for investors will not solve the problem.

"But it's no good creating cities in the southern highlands and outside of Goulburn and outside of Shepparton if the same game is played ... where the investor will have an enormous advantage over the homebuyer and then dominate that market… If we can build a city near Goulburn using the increase in the value of the land to fund a very fast train that could get homeowners to Sydney in half an hour, we could create affordable housing, so long as we knew it wouldn't be snapped up by investors. ”

The Turnbull Government has talked up housing affordability as a centrepiece of its Budget, now it is crab-walking away from it.

Any housing affordability plan that doesn’t reform negative gearing and capital gains tax discounts is a sham.

Like the Prime Minister, the ‘Budget centrepiece’ is turning into a fizzer.

Labor announced its latest tranche of housing policies on 21 April 2017.

Labor’s plan will improve housing affordability, increase financial stability, reduce homelessness and boost jobs:

1. Reform negative gearing and capital gains tax concessions

2. Limit direct borrowing by self-managed superannuation funds

3. Facilitate a COAG process to introduce a uniform vacant property tax across all major cities

4. Increased foreign investor fees and penalties

5. Establish a bond aggregator to increase investment in affordable housing

6. Boost homelessness support for vulnerable Australians

7. Getting better results from the National Affordable Housing Agreement

8. Re-establish the National Housing Supply Council and re-instate a Minister for Housing

 A fact sheet is available here.