Housing Affordability Must Be On The Election Agenda

Before the election was called, the Opposition convened a national summit to examine the problem of declining affordability and subsequently made a number of policy announcements.

 

With only five weeks left until election day, Australia’s aspiring first home buyers want both major parties to declare their position on housing affordability and outline strategies which will provide real solutions to one of the major socio-economic challenges of recent times.

 

Land release measures are a start, but there are broader structural issues which must also be addressed,’ says Graham Joyce.

 

The REIA advocates that:

 

  • a Federal Housing Minister be appointed, with a working party of Federal, State and Local Government and industry representatives to develop cooperative strategies to address the decline in housing affordability;

  • early access be permitted to voluntary contributions to superannuation, with its preferred tax treatment, for a first home deposit;

  • Government should explicitly include home ownership within self-funded retirement policies;

  • state property taxes, which are a disincentive to investment, and in some states, a real barrier to entry for first home buyers, be reduced or abolished;

  • the first home owners grant be increased to $14,000 and index-linked to median house prices;

  • a sliding scale be introduced for Capital Gains Tax, with tax exemptions for rollover into superannuation, to encourage long-term investment in property and free up supply; and

  • an holistic approach is needed to cover demand and supply issues, particularly land release and infrastructure development and costs.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco

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