It demands adjustments to hinder property hoarders
The government may lose crucial backing for its flagship Help to Buy scheme if it does not phase out significant tax concessions for property investors, which, according to Greens housing spokesperson Max Chandler-Mather (pictured right), hinder millions of renters from purchasing homes.
The scheme, aimed at aiding 40,000 qualified buyers and set to launch this year, offers up to a 40% equity contribution for new homes and 30% for existing ones. However, the legislation is currently under review by the Senate, which plans to deliver its findings in mid-April.
The Greens have criticised the initiative, arguing that it would inflate house prices without providing sufficient support to renters and first-time buyers. They are advocating a reduction in property investor tax incentives in exchange for their support, labelling the current plan as a “housing lottery” by Labor.
According to a report by SBS News, the minor party is also pushing for modifications to negative gearing and capital gains tax, proposing the revenues saved be allocated to public housing. Additionally, they suggest implementing a rent freeze and capping rents to further negotiate terms.
According to Chandler-Mather, over 90% of property investments are in existing dwellings, which does not increase housing supply but rather deprives potential first-time buyers of opportunities.
Treasurer Jim Chalmers (pictured left) has dismissed any changes to negative gearing and capital gains tax. Negative gearing permits investors to deduct losses, while the capital gains tax discount reduces the tax on profits from selling assets held for over a year.
The government’s ability to pass the legislation in the upper house reportedly hinges on the support of the Greens and at least two crossbenchers.
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