A new secret document, this time from the New South Wales Treasury, has argued that the Commonwealth should consider reforms to negative gearing and capital gains tax to improve the housing market.
The briefing note also references studies that argue that these tax concessions create substantial distortions to the housing markets, favouring property investors over new home buyers, leading to higher demand and property prices.
This latest revelation comes just days after Commonwealth Treasury documents were released that showed the Turnbull Government was advised from the very start – despite the claims of apocalyptic events– that reforms to negative gearing and the capital gains tax discount would only see a modest downward impact on property prices.
The briefing note was prepared for a December 2016 Treasurer’s meeting and at about the same time then NSW Planning Minister Rob Stokes with the support of then Premier Mike Baird were calling publicly for the Turnbull Government to review these housing affordability policies.
The current Premier, Gladys Berejiklian, has refused to reiterate the advice she received as NSW Treasurer in publicly calling for reform to negative gearing.
Ms Berejiklian has stood by in silence while her Federal Liberal colleagues have conducted a pathetic scare campaign against Labor’s housing affordability policies.
It doesn’t matter whether it’s the Federal or NSW Liberal Government – it takes the release of secret documents to get the truth on housing affordability.
The only way to guarantee that first home buyers are put on a level playing field is by the election of Shorten and Foley Labor Governments.