Prosper Australia

Last night saw SBS’s excellent Insight program tackle housing affordability under the title Out of Reach. Over 270 comments have been posted since the event, giving warrant to the excellent comparing host Jenny Brockie does each week.

As probably the fourth panel type forum seen on non-commercial TV over the last year, this one was the best. Julian Disney pushed for the kind of hard nosed reform that we prefer - wholesale tax reform. Though he was hesitant to go as far as we do, he did state that negative gearing be abolished and capital gains on property be captured.

Ross Gittens, economic commentator with Fairfax, even surprised by stating that Commonwealth Rent Assistance only leads to higher rents. In effect it is a subsidy for the landlords. To see ALP Minister for Housing Tanya Pliberseck agree was of interest. A cursory knowledge of economics and the law of rent should see her applying this to virtually every other ALP housing policy as well.
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Negative Gearing provides cream for nation’s wealthiest

Our topsy turvy tax system sees commentators claiming: “In most businesses, losing money is frowned on. In this one, however, it has become the spirit of the game, with landlords writing off their claimed losses against tax, and effectively using the savings to subsidise their property investment.”

So with an annual $3 billion subsidy provided by negative gearing, a record house & land price boom and governments at all levels bending over backwards to assist the property lobby, why do we still have a massive shortage of housing?
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