Anglicare Australia has welcomed reports that the Federal Government is considering scrapping the capital gains tax (CGT) discount on investment properties and returning to a fairer system.
Executive Director Kasy Chambers said the reports signal a shift toward the kind of reform needed to fix a housing system that has been tilted toward investors for decades. Ms Chambers said it was particularly positive that the Government appeared to be considering more ambitious change, rather than relying on heavily grandfathered reforms that would take years to have any real impact.
“The housing crisis is not an accident. It is the result of policy choices that have prioritised investor returns over people’s need for a home,” Ms Chambers said.
“For too long, our tax system has rewarded speculation while people doing it tough have been left to compete in an out-of-control housing market.
“Anglicare Australia has been calling for changes to investor tax breaks for almost a decade. It is encouraging to see the Government now turning its attention to these reforms, and looking at ambitious change.
“We have consistently warned that reforms which allow investors to hold onto existing tax breaks, or which only make marginal changes, will not meaningfully improve housing affordability.
“The fact that the Government is looking at more substantial reform is an exciting step forward.”
Anglicare Australia said it looks forward to seeing the detail of any proposed reforms and continuing to work constructively with the Government.
“This is a real opportunity to reset the system and put people back at the centre of housing policy,” Ms Chambers said.
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