“This report does not deal with housing supply and assumes that by addressing the demand side that this will solve the problem for many aspiring home buyers,” said REIA President, Mr David Airey.

“You cannot penalise current home owners by adding Capital Gains Tax (CGT) or Land Tax to solve the problem of a lack of supply,” continued Mr Airey.

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“This is akin to treating a headache with a hammer,” he said.

The report also suggests that negative gearing provisions for property investors be reconsidered.

“The report has overlooked what happened in July 1985 when the Hawke Government made changes to negative gearing for investment property,” said Mr Airey.

“In the months following, rents began to escalate due to the shortage of rental properties. In order for investors to receive the same return to those prior to the changes, rents were pushed up by over 50 per cent,” he continued.

Negative gearing rules were subsequently changed less than 24 months after they were introduced.

“The vacancy rate for rental accommodation is already low and would plummet if this report was acted on.

The proposal exacerbates rather than solves the problems for renters,” he said.

“This attack on the family home with more tax is simply not on, and we will fight it with every home owner,” concluded Mr Airey.