Chris Bowen today reiterated Labor’s proposal to increase rents through their ill-conceived housing tax.
In a media release and speech today, Bowen has again argued for an increase in rents through Labor’s proposal to effectively end the ability of mum and dad investors to provide rental stock to their fellow Australians.
The facts are that 27 per cent of Australia's housing stock is owned by investors, with 2 million taxpayers in Australia having an interest in a residential investment property.
Over 70 per cent own just one property and 90 per cent own no more than two. 1.3 million of these taxpayers negatively gear their investments, including 58,000 teachers and one in five police officers.
In addition, two thirds of those taxpayers who negatively gear their investments have a taxable income of $80,000 or less.
Taking mum and dad investors out of the private rental market would mean less rental properties available for Australians, leading to higher rents, crowding out of those on lower incomes as well as even greater pressure on overstressed community and social housing providers.
And Labor knows this – they still refuse to provide any modelling on how their housing tax will impact the rental market. Chris Bowen has had opportunity after opportunity to commission and release this modelling. The silence has been deafening.
In contrast, in the Budget the Turnbull Government outlined a comprehensive and targeted plan to reduce the pressure on housing affordability across the entire housing spectrum, from the homeless, through to renters and those seeking to buy their first home.
Labor needs to get real when it comes to housing affordability and support our plan.