Labor backflip would only benefit the rich

2021-02-15

Australian Greens Housing spokesperson Senator Mehreen Faruqi has said reports that Labor may scrap commitments to wind back negative gearing and reduce capital gains tax (CGT) deductions would only benefit the wealthy.

Senator Faruqi said:

“For decades, Australian governments have created a housing system that actively impoverishes people and makes inequality worse.

“Not too long ago, Labor was calling out negative gearing and the CGT discount as “tax subsidies” that “benefit the wealthiest Australians” and are “skewed to high income earners”.

“This seems to be an opposition in name only. There is no good policy reason for backing down on negative gearing and capital gains. Any back down would be purely political and would only benefit the rich. It will do nothing to provide a home for everyone.

“Covid-19 has put the inequity and inhumanity of our housing system starkly in the spotlight. Labor should be strengthening its policies on negative gearing and capital gains, not abolishing them.

“I’m urging Labor not to shrink away from what are very modest policies. In reality, we should dismantle this rigged system through comprehensive reform and winding back CGT deductions and negative gearing.”