Affordable housing tax credits a positive, but much wider action still needed

Queensland Senator Andrew Bartlett has welcomed Housing Minister Tanya Plibersek’s commitment to proceed with tax credits to encourage affordable housing.

"In amongst all the focus on inflation and interest rates, the affordable housing crisis has continued to worsen, for renters as much as home buyers," Senator Bartlett said.

"The indication from Minister Plibersek that Labor will be proceeding with the pre-election promise in this area is welcome, but it is certainly far from enough."

"At a time when all government expenditure is being reviewed with an eye to savings and cutbacks, we should be casting an eye on immensely expensive tax breaks such as negative gearing and capital gains tax concessions to see whether they really do produce worthwhile social or economic outcomes.

"There needs to be an urgent and comprehensive overview of all the factors contributing to our housing affordability crisis, combined with solid economic modelling attached to every proposal to make sure we don’t just get a few counter-productive band-aids that will make the problem worse over time.

"The Senate Select Committee into Housing Affordability which has just got underway should be able to make a positive contribution to this urgent and crucial policy area.

"I urge the Labor government to keep an open mind on all proposals so Australians get the best chance of a genuine package of solutions being implemented to fix this most crucial of problems," Senator Bartlett concluded.

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