The Greens are jeopardizing the federal government’s housing scheme, which aims to assist Australians in purchasing homes, by opposing Labor’s help-to-buy initiative. The plan to co-own properties with citizens may face failure due to this threat.
The Government Accuses Greens and Coalition of Hindering Support for Housing Scheme and Negative Gearing Reform
Is Negative Gearing Reform the Solution to the Housing Scheme Issue?
Amidst a housing scheme dilemma, the question arises: can we afford to overlook the necessity for negative gearing reform? Ian Verrender sheds light on a longstanding policy that has favored the affluent, leading to a scenario where property ownership is a privilege reserved for a select few, hindering the prospects of the younger generation.
Impact of Negative Gearing Reform on Housing Scheme
The Greens have expressed their stance on the bill, indicating their willingness to back it only if the government commits to phasing out tax benefits for property investors, specifically targeting the negative gearing scheme and capital gains tax concessions.
Under the current system, property investors can offset losses from rental properties against their income tax. Additionally, they enjoy the advantage of only being taxed on half of the profits generated from selling an investment property held for over a year.
However, any move to scale back these tax advantages would signify yet another unfulfilled promise by the federal government, following its recent decision to modify planned tax reductions set to come into effect in July.
Julie Collins, the Housing Minister, has criticized both the Greens and the Coalition for obstructing efforts to provide more housing support to Australians.
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