Reserve Bank warned: Housing Affordability Tool Box Empty

Speculators rub their hands with glee at prospect of further tax write offs

“Today’s interest rate increases have rewarded the wrong people. Speculators will today be able to increase the amount of tax they can write off” said Prosper Australia spokesman Karl Fitzgerald.

“The Reserve Bank’s policy tool box is empty when it comes to housing affordability. Higher interest rates hurt first home owners but reward speculators.”

“Today’s Interest Rate increase will see $300m handed to speculators in the form of extra negative gearing tax write offs”

“Higher interest rates allow a privileged few greater tax write offs via negative gearing.”

“Why are those who already own the planet encouraged to own even more?”

“Recent Census figures show that there are 830,376 vacant dwellings in Australia representing 10% of all housing stock, up 112,000 on the last census. Why does government policy continually overlook the need to encourage greater efficiency in the land and housing market?”

“The Reserve Bank should impose a Federal Site Rental fee on all land. With the Reserve Bank administering such a policy, the political machinations that flow from developer contributions are avoided. The Site Rental should be set at a flat rate.”

“With such a policy in place, no longer can land or property be withheld to manufacture capital gains. The extra supply puts downward pressure on land and housing prices. Urban infill over never ending sprawl becomes possible.”

“The imposition of such a revenue raising mechanism would allow government some real tax reform in an effort to remove some of the 56 taxes and 182 potential taxing points throughout Australia.”

“The Superannuation contributions deadline was expected to create a ‘buyers market’. With Victorian house and land prices increasing a whopping 10.2% in just one quarter, it is obvious the government must look at deep seated reform. A Site Rental will assist first home buyers and penalise those after an easy dollar from land speculation” finished Mr Fitzgerald.

For more details contact Karl Fitzgerald, Projects Coordinator, 03 9670 2754 www.prosper.org.au

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https://prosper.org.au/2007/08/29/reserve-bank-warned-housing-affordability-tool-box-empty/