I would like to submit the following list of ideas for the Committee to investigate.
I am not an economist nor am I a banker. I’m an Australian who continues to look on with
disappointment that successive governments of Australia never truly deal with the issue of
housing affordability. Instead, tokenistic policies continue inflate the market further.
I understand that many of these ideas will cause disruption in the market. But the current
system is, in my view, broken and needs repair for the good of the society we live in.
1. Writing off tax (negative gearing) should not be for investment properties. A better
incentive to create a more accessible market would be the ability to offset tax on the
interest payments on the mortgage of your primary residence.
2. Then, eliminate offsetting tax liabilities or expenses on investment properties.
3. 50% Capital Gains Tax (CGT) on primary residences sold prior to 5 years.
4. 50% CGT on all investment properties.
5. Only Australian citizens be eligible to purchase residential property in Australia.
6. The Federal Government to consider a Vacant property tax where if a residence is left
vacant, a tax of 15% pa of the value of the property is levied on the owner of the property. I
understand that this may have to be implemented at State or local level.
We are at a pivotal time in Australia’s history. The Investor Speculation Market for housing
is creating deep inequality. Speculators keep people from owning their own homes. They
usually have better access to finance and continually drive the prices up.
Currently, with record low interest rates, Australians of all levels of wealth are moving into
property to take advantage of the system that benefits them as investors and keeps real
people from being able to own their own home.
The Government of Australia needs to give every Australian the ability to own their own
home. As a country we need to move away from policies that enable rent seekers to the
detriment of residential home owners.