Tax Changes ‘Crack the Nut’ on Housing Affordability
Slumping auction clearance rates show buyers continue to eschew the property market, but prospective home owners are set to win long term. The nation’s housing market is undergoing its biggest affordability improvement in 50 years, according to left-leaning think tank the Australia Institute. Labor’s curbs to investor tax breaks were largely to thank, Chief Economist […]
TL;DR
- The Australian housing market is seeing its biggest affordability improvement in 50 years.
- Labor's changes to investor tax breaks, including capital gains tax discounts and negative gearing, are credited with this improvement.
- These tax changes are described as having "cracked the nut" on the issue of housing affordability.
- Slumping auction clearance rates indicate buyers are currently avoiding the property market, but this is expected to benefit buyers in the long term.