All existing properties are fully grandfathered – and therefore, unaffected. In fact, all existing properties purchased prior to 1 July 2017 will be unaffected by these changes. 93 per cent of all investment property lending in Australia is focused on existing property. That’s not a tax concession that is working well. Australia can and must do better.
Tax concessions for negative gearing will continue to be available to people of all career types and income levels. But Labor’s reforms mean that we want property investors focusing on purchasing new properties. This will boost investment and jobs in the economy, while encouraging new housing supply.
Labor’s proposed reforms to negative gearing and capital gains tax are our plan to make sure the housing market works for all Australians. We want to level the playing field to make sure we have a housing market that works for first home buyers as well as investors.
Labor doesn’t want to let the Australian dream of owning your own home vanish for our kids. For Labor, this is about putting some fairness back into the housing market, and making improvements to the Budget bottom line.
So what’s the issue with housing affordability in Australia?
As you may have experienced as a first home buyer yourself, buying your own first home isn’t exactly a walk in the park.
Labor is worried that the Australian Dream of home-ownership is slipping out of the reach of too many middle class and working class families.
- First home buyers make up just 1 out of 7 of all home purchases in Australia
- Ownership rates for young people aged 25-34 have spiralled downwards in recent years from 60% to 48%.
If we keep going like we are now, there’s a very real risk future generations of young Australians will be locked out of the property market forever.
The problem is, first home buyers are on an uneven playing field with other buyers such as investors:
- Investors in Australia have an unfair advantage because they can access the most generous tax concessions on housing in the developed world.
- Last year, for the first time in history, more than 50% of all new home loan approvals were for investment purposes.
Labor has a plan to put the Australian dream of owning your own home back within the reach of first home buyers.
If we want a housing market that works for first home buyers as well as investors, we need your support. Will you add your name to hear more about this policy as it progresses and help put pressure on the government to do something about housing affordability in Australia?