Community groups across Australia are urging members of parliament to support reforms to negative gearing and capital gains tax, arguing that the current system exacerbates the housing affordability crisis. In a coordinated campaign, dozens of organizations representing renters, low-income households, and social housing advocates have written to MPs, demanding action on tax concessions they say disproportionately benefit wealthy investors.
Call for Change
The groups argue that negative gearing and the capital gains tax discount are driving up property prices and locking first-home buyers out of the market. They want the government to limit negative gearing to new homes and reduce the capital gains tax discount, which currently allows investors to pay half the tax on profits from property sales held for more than a year.
Impact on Housing Crisis
According to the advocates, these tax breaks cost the federal budget billions of dollars each year while doing little to increase housing supply. They claim that the benefits flow mainly to high-income earners who own multiple properties, rather than to those struggling to find affordable housing. The groups are calling for the savings from reform to be redirected into social and affordable housing programs.
The campaign comes as the government faces mounting pressure to tackle housing affordability, with rents soaring and home ownership becoming increasingly out of reach for many Australians. The opposition has signaled support for some changes, but the government remains divided on the issue.
In their letter, the community groups highlight that Australia's housing tax concessions are among the most generous in the world and that reforming them could help cool the market and make housing more accessible. They urge MPs to put the interests of ordinary Australians ahead of property investors and to act decisively to address the crisis.
