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The RBA’s decision this week following the recent resurgence of inflation highlights the dangerous dichotomy of Australia’s economy: households and businesses vs government.
Australia does need more social housing.
Australia faces a persistent and growing housing supply shortfall. Population growth has accelerated, while the delivery of new homes has failed to keep pace. This report examines the role of foreign investor taxes and regulations in contributing to that imbalance and finds that these policies have materially constrained new housing supply while delivering uncertain and potentially negative, revenue outcomes.
The Australian Financial Review article (13 January 2026) “Wind back capital gains tax break, Labor told” rests on a fundamental misdiagnosis of Australia’s housing challenge.