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Housing affordability needs sophisticated approach

National Shelter, the peak NGO housing advocacy group, has welcomed the Treasurer’s recognition of the housing affordability crisis but says his approach wilfully ignores key drivers of house price inflation.

National Shelter Exec. Officer, Adrian Pisarski said “Planning schemes and state taxes do need to be addressed but a simple supply response doesn’t help those in critical housing stress, we need specific strategies for the supply of low cost rental housing and for purchase.”

National Shelter points to the rich research from AHURI and others about the flow on effects of negative gearing, capital gains tax discounts, depreciation allowances, and declining investment in affordable housing, under commonwealth control which the Treasurer deliberately avoids.

“The government seems only to listen to the vested interests of the housing industry, desperate to protect their preferential treatment and only seems capable of shifting blame onto State systems.”

“We acknowledge that states have positive roles to play and we call for inclusionary zoning, betterment taxes, planning scheme measure, better infrastructure, but ignoring commonwealth issues is extreme folly when the evidence points to speculative investment driving the wrong outcomes fuelled by the commonwealth tax settings.

“It is also difficult to see how states can shift their tax base away from stamp duties which have been a major source of their recent budget repair, driven by the same speculative investment.

“The industry and state treasuries are hooked on the inflationary high peddled by the commonwealth through the tax system and blinded by their addictions trafficked by the tax system.”

National Shelter also points to recent booms in supply which have done little to ease affordability, because “they are not meeting the specific problems we have for lower and moderate income households, it’s not just supply but the kind of supply, ensuring those who need it get to occupy it.”

National Shelter calls for a national housing strategy to be the central reform to untangle the housing mess created by successive government and market failures to address spiralling housing inflation both purchase and rental.

ENDS

Contact Adrian Pisarski on 0417 975 270