Jack Thrower
Research economist

Labor know that negative gearing and the CGT discount push up housing prices. That’s why they went to the 2016 and 2019 election saying they would crack down on it.

Their latest budget has shown they still believe this is the case. The budget bans foreigners from buying existing dwellings. This shows Labor knows that investors buying existing housing pushes out first-home buyers.

But foreign buyers only make up a tiny part of the market. If they really want to increase home ownership, they need to reform negative gearing and the CGT discount.

If the Government fixed negative gearing and the capital gains tax discount, we could stop housing speculation, raise billions, and reduce inequality.

Also in the budget:

In its first budget the Government funded work to establish “an independent Makarrata Commission to oversee processes for agreement making and truth telling”. Unfortunately this funding expires this year and the budget includes no further funding. The Prime Minister has said that the money is being diverted, but it seems clear that the Government continues to back away from its commitment to the Uluru Statement from the Heart.