You can’t tax your way out of a housing shortage – has the Federal Budget made Australia’s housing crisis worse? | Anthony Landahl on Ausbiz
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In my latest Ausbiz appearance, I unpack why confidence is fading across Australia’s housing market and why the latest tax changes may have unintended consequences for investors, renters and first home buyers alike.
📉 Auction clearance rates have fallen to their lowest levels since 2020.
🏠 Sydney and Melbourne house prices are now trending lower.
💰 Investors are reassessing property ownership following changes to negative gearing, CGT and SMSF borrowing rules.
📈 Meanwhile rents continue to rise, vacancy rates remain near record lows, and renters are spending around one-third of their income on housing.
The Government argues these reforms will improve affordability and help first home buyers – however they do little to address the real issue: housing supply.
If fewer investors fund housing while construction remains constrained, we risk creating less rental stock, higher rents and even greater affordability challenges. The bottom line: You can’t tax your way out of a housing shortage. Until supply increases meaningfully, affordability won’t improve—it will simply shift the burden from buyers to renters.
Anthony Landahl | Managing Director Equilibria Finance
This is for general information purposes only and does not constitute advice. With all of these options there are a number of considerations outside the scope of what is covered in this article that you need to understand to ensure your personal circumstances are taken into consideration.
Equilibria Finance is a mortgage broking practice specialising in delivering residential and commercial mortgage and business and asset finance solutions to the clients of financial advice and accounting practices.
