Labor has a comprehensive plan to tackle the housing affordability crisis, including by reforming tax concessions like negative gearing and increasing housing supply through a more viable Build-to-Rent sector and working with the community sector to build 250,000 new homes.
Australia is in the midst of a housing affordability and homelessness crisis under the Morrison Government – our housing system simply isn’t delivering for working and middle-class Australians.
Rates of home ownership have plummeted to historic lows, record numbers of families are experiencing rental and mortgage stress, and many of the most vulnerable in our communities are at‐risk or experiencing homelessness.
Secure housing is essential to wellbeing, participation and inclusion. All Australians have a right to safe, affordable and appropriate housing throughout their lives. But the Abbott-Turnbull-Morrison Government has failed to provide national leadership in housing policy or to invest in the supply of Australia’s affordable housing stock.
A Shorten Labor Government will:
- Reform negative gearing so that deductions can only be claimed on newly built homes, which will increase new housing supply and support jobs. We will reform the capital gains tax concession and allow existing investors to maintain their current CGT and negative gearing entitlements. There will be no retrospective taxation or impost on existing investors.
- Build 250,000 new affordable rental homes over the next decade in partnership with the community housing sector for Australians on low and moderate incomes. We will also ensure that 1 in 10 employees engaged in building new housing stock under our scheme are apprentices.
- Create a viable Build to Rent sector in Australia – giving institutional investors better tax concessions; encouraging more construction; and stimulating the housing market. We will do this by cutting the managed investment trust withholding rate in half from 30 per cent to 15 per cent to encourage new housing supply.
- Provide $88 million over two years for a new Safe Housing Fund to increase transitional housing options for women and children escaping domestic and family violence, young people exiting out-of-home care and older women on low incomes who are at risk of homelessness.
- Limit direct borrowing by Self-Managed Superannuation Funds. Limited recourse borrowing in SMSFs has exploded in recent years, increasing risk in the superannuation system and crowding out first home owners.
- Facilitate COAG processes to introduce a uniform vacant property tax across all major cities.
- Increase fees for overseas investors buying Australian real estate and increase penalties when they break the law.
- Achieve better results from National Agreements, including better rights for renters, planning reform, inclusionary zoning, and accelerated land release.
- Re-establish the National Housing Supply Council and appoint a dedicated Federal Housing and Homelessness Minister.
- Establish a new and independent COAG Economic Reform Council that will be given the autonomy to examine, track and report to COAG on long-term reform priorities, including on housing affordability and supply.
- A Shorten Labor Government will ensure that the issue of affordable housing for all Australians is front and centre of our national agenda for the next decade and beyond.