{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location {{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationTax changes will cripple housing supply and punish renters
Tax changes will cripple housing supply and punish renters
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
“Australia’s rental market remains extremely tight. The national residential vacancy rate is just 1.1 per cent, which is well below a balanced level,” said Ms Martin.
“There are even tighter conditions in Brisbane (0.8 per cent), Perth (0.6 per cent), Adelaide (0.8 per cent) and Hobart (0.5 per cent).
“Australia has an acute shortage of rental housing. Any policy that discourages investment in rental homes will only make conditions worse for renters.
“New independent economic analysis commissioned by HIA confirms that changes to negative gearing and capital gains tax would significantly reduce the supply of rental housing by discouraging new investment and slowing housing construction.
“The analysis shows that removing negative gearing would result in tens of thousands fewer homes being built, reduced construction employment and higher rents as rental supply tightens further.
“Removing negative gearing, with minimal grandfathering, would lead to a 46,000 reduction in homes built, a loss of over 4,300 construction jobs and a fall in GDP of $2.3 billion.
“It also finds that changes to capital gains tax would reduce new rental investment and place additional upward pressure on rents over time.
“Removing the CGT discount, with minimal grandfathering, would lead to a 33,000 reduction in homes built, a loss of over 3,000 construction jobs and a fall in GDP of $3 billion.
“Combined, these tax changes would have a compounding effect, fewer rental homes, lower housing construction and higher rents paid by tenants.
"Renter affordability is ultimately about supply. When fewer rental homes are built, renters face higher rents and fewer choices.
“Private investors supply around nine in ten rental homes across Australia, the majority of whom are small-scale, mum and dad investors. Stable and predictable tax settings play a critical role in supporting the ongoing supply of rental housing, particularly new homes entering the market.
“HIA has consistently warned that Australia is not building enough homes to meet demand. Reducing incentives for rental housing investment will only widen this gap.
"If governments want to help renters, the focus must be on increasing housing supply. Targeting rental housing investment with new taxes will make the rental crisis worse, not better," concluded Ms Martin.
For more information please contact:
Update: contracts signed before 1 July 2026 and optional cover
HIA will continue to update you as we receive further advice and information on the ongoing transition from Domestic Building Insurance (DBI) to the First Resort Home Warranty Scheme (FRHWS).
Six-month lifeline no substitute for permanent fire testing solution
The Housing Industry Association (HIA) has welcomed the decision to extend the lease of CSIRO's North Ryde fire testing facility by six months, saying the announcement provides valuable breathing space but does not resolve the long-term threat to Australia's building product testing capability.
Apartment surge sets the stage for missing middle era
“The strong pipeline of multi-unit dwelling approvals recorded during the second half of 2025 has begun to translate into construction activity,” said Geordan Murray, HIA Executive Director ACT & Southern NSW.
Top end apprentices helping build Australia's housing future
The Housing Industry Association (HIA) has welcomed Leader of the Opposition Angus Taylor and Shadow Minister for Skills and Training Senator Jacinta Nampijinpa Price to the HIA Skills Centre in Darwin this week to meet apprentices and discuss the workforce challenges confronting Australia's residential construction industry.