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{{propApi.successMessage}} {{region}} Change locationHousing cannot be made more affordable by increasing taxes
Housing cannot be made more affordable by increasing taxes
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“We cannot tax our way out of the housing affordability problem. The solution is less tax on housing and less government distortions on the market.
“Reviews of housing taxation, including the Henry Tax Review, are consistent in identifying the need to solve the supply problem before considering more taxes on homes.
“The RBA, Productivity Commission, Federal and State Treasurers have all identified the constraints on the supply of housing as an underlying cause of the housing affordability challenge.
“Addressing affordability requires a coordinated effort by all tiers of government to allow the industry to respond with the type and location of housing required to satisfy the pent-up demand.
“It is illogical to conclude that reducing opportunities to provide rental accommodation can make a meaningful impact on housing supply and rental affordability.
“As was the case in each consideration of changes to tax settings in the past, it is government policies that remain the primary cause of the shortage in housing supply.
“Governments continuing to blame migration, local investors and foreign investors for the housing crisis falls well short of the truth,” Mr Reardon concluded.
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