Changing tax rules for investors won’t shrink housing supply or raise rents. Just look at Victoria
Key takeaways
- While extra land tax in Victoria spurred warnings about less rental supply and higher rents, the investor taxes actually seem to have helped Victorians enter the housing market without pushing up their rents.
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- It is now clear that Labor will usher in changes to negative gearing and capital gains tax designed to make property less attractive to new investors.
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While extra land tax in Victoria spurred warnings about less rental supply and higher rents, the investor taxes actually seem to have helped Victorians enter the housing market without pushing up their rents. Photograph: Joel Carrett/AAPView image in fullscreen While extra land tax in Victoria spurred warnings about less rental supply and higher rents, the investor taxes actually seem to have helped Victorians enter the housing market without pushing up their rents. Photograph: Joel Carrett/AAPAnthony AlbaneseAnalysisChanging tax rules for investors won’t shrink housing supply or raise rents. Just look at VictoriaJonathan Barrett and Luca IttimaniLabor’s anticipated reforms are not a panacea, but they could nudge Australia toward a more equitable trajectory
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The Albanese government is preparing to unveil a budget that will recast housing as shelter – rather than a financial tool – in changes that have already sparked heated warnings that rents will rocket and housing supply will be curtailed.