Queensland Senator Andrew Bartlett has welcomed the report tabled today by the Senate Select Committee on Housing Affordability, while calling for stronger action in areas such as social housing, the capital gains tax exemption and the First Home Owners Grant.
"The Committee, ably chaired by Liberal Senator Marise Payne, has made a real effort to produce a comprehensive and balanced report into this complex but crucial issue, rather than go for simplistic solutions or political point scoring," Senator Bartlett said.
"However, while I support the wide ranging recommendations, I believe housing affordability is such a pressing issue that there needs to be some stronger, more immediate actions beyond what the Committee proposes."
"I strongly support the recommendation for the government's tax review to include examination of the housing market impacts of negative gearing and the capital gains tax discounts for investors.
"However, the capital gains tax exemption on the family home should also be examined. This regressive tax break is estimated to cost a massive 20 billion dollars a year in foregone revenue, whilst social housing is underfunded receiving about 5% of that total.
"I very much welcome the proposal for extra money to be put into public and community housing, but believe that the amount needs to be greater.
"The first home owners grant also needs to be modified so that it applies only to those who actually need that assistance to be able to afford a house, rather than going to people who will just use it to buy a slightly more expensive house.
"The previous government's failure to take any leadership on the growing housing affordability crisis is a key reason why things have got as bad as they are. The new federal government must not follow in John Howard's footsteps in ignoring important Senate reports. The situation is too urgent and important not to and the Rudd government must respond promptly to this comprehensive and balanced document.
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