2016-05-02
The government's stubborn refusal to act on yet another substantial piece of evidence that negative gearing is forcing people out of the housing market shows just how divorced from reality they are, the Australian Greens said today.
"A Liberal-chaired inquiry into housing affordability found that negative gearing has created a housing market dominated by speculative investors, a housing market where first home buyers are increasingly shut out," Australian Greens Co-Deputy Leader and Housing spokesperson Senator Scott Ludlam said today.
"Young people are trying to enter a market where homes cost more than 10 times the average annual income - the real average of around $60000 - not Scott Morrison's $80000+ fantasy figure. Their parents paid perhaps 2 or 3 times their annual income for their home.
"The rate at which house prices are increasing, far in excess of wage growth, means it's getting harder for people to own their first home. The Greens plan to end negative gearing would end this subsidy for property investors, and help ease the way for renters and new buyers.
"Now we know that some Liberal MPs are aware of the true impact of negative gearing. In the past Malcolm Turnbull himself spoke very strongly on the use of negative gearing to avoid paying tax. Of course Mr Turnbull, just as he's done with virtually every other issue, abandoned that position the moment it became inconvenient.
"The Coalition is defying reality on negative gearing, and the Greens welcome the opportunity to put housing affordability and fairness at the heart of this election campaign," Senator Ludlam concluded.