Taxing property investors more may not increase housing supply because Australia already faced a 35,000 investor shortfall in rental properties between 2019-2024, and Treasury officials acknowledged that Capital Gains Tax changes would have minimal impact on housing supply, potentially reducing rental availability and increasing rents for vulnerable populations.
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Taxing Investors More Won't Fix Housing — And Here's The Data To Prove It 📊Añadido:
The government says taxing investors more will help first home buyers.
Treasury says otherwise. Here is the data. Between 2019 and 2024, Australia needed 212,000 new rental properties to keep up with the population growth. We got investors providing about 110,000.
We were already short. If you make investing less attractive, some investors sell fewer rentals. Vacancy rates are already near record lows.
Rents go up for the people who can least afford it. Senate inquiries hearing heard from Treasury officials that CGT changes would likely have minimal impact on the housing supply. Their words, not mine. The full video breaks all this down with data. Link is in the bio.
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