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Greens renew call to end negative gearing and reform CGT

Media Release
Lee Rhiannon 17 Oct 2016
A recent housing survey, that found 79 per cent of Australians believe the job of government is to ensure new housing developments include affordable housing, puts the Prime Minister on notice to phase out negative gearing and capital gains tax discounts. 
 
Greens spokesperson for housing Senator Lee Rhiannon says the Greens are renewing their calls to phase out negative gearing and capital gains tax discounts. The Greens want to direct proceeds from those reforms into affordable housing. 
 
The survey, commissioned by the NSW Federation of Housing Associations, found that only 28 per cent of people were confident that the next generation would have the same housing standards as the current generation. 
 
“The Greens are renewing our calls to phase out negative gearing and capital gains tax discounts, and to invest proceeds from these reforms back into housing affordability,” Senator Rhiannon said. 
 
“While voting down a Greens/Labor motion calling for negative gearing and CGT reform, the Turnbull government took the opportunity to insist that negative gearing helps middle-income Australians to ‘get ahead’. 
 
“The fact is that each year $4 billion of public money is spent on negative gearing, while more than half the benefits flow to the top 20% of households. The CGT discount is our 6th largest expenditure item, and more than 73% of benefits flow to the top 10% of income earners. 
 
“In refusing to enter into discussions about winding back these subsidies for the wealthy, Prime Minister Turnbull continues to demonstrate his political cowardice. 
 
“Wilful ignorance of the basic facts of housing affordability and contempt for the housing and homelessness sector will be a death knell for the Prime Minister,” Senator Rhiannon said. 
 
Motion: Housing affordability 
11 October 2016
 
Senator RHIANNON (New South Wales) (15:58): I, and also on behalf of Senator Cameron, move:
That the Senate—
(a) notes that:
   (i) Australian dwellings increased in price by 10 per cent in 2015-16, indicating a clear national housing affordability crisis, with Sydney prices increasing by 13 per cent and Melbourne by 13.9 per cent, and
   (ii) significant causes of these price increases include distortionary negative gearing and capital gains tax discount policies; and
(b) calls on the Federal Government to significantly reform negative gearing and the capital gains tax discount to ensure housing is more affordable for first home buyers.
 
The motion was voted down by one vote with 29 Noes to 28 Ayes. 
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