Housing affordability affects all of us; it accounts for the biggest expense in every Australian household budget, and affordability is getting worse every year. Yet we do not have a national plan to do anything about it.
This story invites us to consider a question that is at the heart of much of the current debate on negative gearing, and which has long dogged the conversation on government policy relating to housing affordability.
It's high time for Federal and State Governments to take action to deliver housing market outcomes that actually house people. The combined annual cost (or national loss) of the capital gains tax concession and negative gearing is around $7 billion. This in itself should drive pressure for reform.