Labor’s broken tax promise could hit SA renters
The South Australian Liberals have warned any Federal Budget changes to negative gearing or capital gains tax concessions would hit South Australia particularly hard and risk worsening the state’s housing crisis.
New modelling shows South Australia has the second-highest exposure in the nation to potential property tax changes, at a time when Adelaide already has one of the tightest rental markets of any capital city.
Adelaide’s vacancy rate remains near record lows, consistently under 1 per cent, while rents continue to rise faster than wages.
Shadow Treasurer Ben Hood said the Federal Government should stick to its promise and not pursue policies that discourage investment in housing supply.
“South Australians are already struggling to find affordable rentals and any move that reduces investment in housing will only make that worse,” Mr Hood said.
“Small investors own the majority of Adelaide’s rental stock. Creating uncertainty around negative gearing or capital gains tax will reduce confidence and place further pressure on renters.
“The reality is, if you tax something more, you will get less of it. South Australia cannot afford policies that limit the supply of housing, pushing rents even higher.”
Shadow Minister for Housing Josh Teague said the state’s housing market was already under enormous strain.
“With vacancy rates at critically low levels, even a small reduction in investor activity will have serious consequences for housing supply in South Australia,” Mr Teague said.
“The focus should be on increasing the supply of homes and supporting investment that delivers more housing for South Australians.”
This Federal Budget, the South Australian Liberals are calling on the Albanese Labor Government to prioritise:
No changes to negative gearing or capital gains tax arrangements that would disproportionately impact renters and first-home buyers in South Australia.
Bringing forward and fully funding for the remainder of the Greater Adelaide Freight Bypass.
Greater share of road funding, including reinstating the Supplementary Funding to South Australia for Local Roads.
Further commitments to build or expand childcare centres in regional and rural South Australia.
The South Australian Liberals have warned any Federal Budget changes to negative gearing or capital gains tax concessions would hit South Australia particularly hard and risk worsening the state’s housing crisis.
New modelling shows South Australia has the second-highest exposure in the nation to potential property tax changes, at a time when Adelaide already has one of the tightest rental markets of any capital city.
Adelaide’s vacancy rate remains near record lows, consistently under 1 per cent, while rents continue to rise faster than wages.
Shadow Treasurer Ben Hood said the Federal Government should stick to its promise and not pursue policies that discourage investment in housing supply.
“South Australians are already struggling to find affordable rentals and any move that reduces investment in housing will only make that worse,” Mr Hood said.
“Small investors own the majority of Adelaide’s rental stock. Creating uncertainty around negative gearing or capital gains tax will reduce confidence and place further pressure on renters.
“The reality is, if you tax something more, you will get less of it. South Australia cannot afford policies that limit the supply of housing, pushing rents even higher.”
Shadow Minister for Housing Josh Teague said the state’s housing market was already under enormous strain.
“With vacancy rates at critically low levels, even a small reduction in investor activity will have serious consequences for housing supply in South Australia,” Mr Teague said.
“The focus should be on increasing the supply of homes and supporting investment that delivers more housing for South Australians.”
This Federal Budget, the South Australian Liberals are calling on the Albanese Labor Government to prioritise:
No changes to negative gearing or capital gains tax arrangements that would disproportionately impact renters and first-home buyers in South Australia.
Bringing forward and fully funding for the remainder of the Greater Adelaide Freight Bypass.
Greater share of road funding, including reinstating the Supplementary Funding to South Australia for Local Roads.
Further commitments to build or expand childcare centres in regional and rural South Australia.
The reality is, if you tax something more, you will get less of it. South Australia cannot afford policies that limit the supply of housing, pushing rents even higher.
