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Turnbull’s lack of leadership on negative gearing will be fatal

Media Release
Lee Rhiannon 4 Oct 2016

Greens spokesperson for housing Senator Lee Rhiannon has commented on reports today that an increase in housing supply is insufficient to improve housing affordability.

“Over a decade of chronic undersupply has been accompanied by decades of subsidies to property investors and speculators,” Senator Rhiannon said.

“Without reforming negative gearing and the Capital Gains Tax discount, we will continue to lock ourselves into a perpetual affordable housing deficit.

“We have a situation in Sydney where home buyers need six figure salaries to comfortably afford housing repayments on a 30-year loan. And we have a government which is only willing to govern for the upper echelons of society.

“Back in 2005 Malcolm Turnbull called for negative gearing reform, but over a decade down the track he has abandoned any skerrick of political leadership and courage. His devotion to negative gearing is locking thousands of first home-owners out of the housing market.

“Two months ago it was reported that Prime Minister Turnbull and Treasurer Scott Morrison argued in cabinet to tighten negative gearing concessions but were rolled by conservative members of their parties.

“If Prime Minister Turnbull, himself an owner of multiple investment properties, continues to stick his head in the sand and fail to fight for these critically needed reforms he will cement himself as a useless leader by every metric.

“Negative gearing costs us almost $4 billion each year with over half the benefits flowing to the top 20% of households. The CGT discount, our 6th largest tax expenditure, will cost us $6.8 billion this financial year – and over 73% of the benefit will flow to the top 10% of income earners.

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