Weekend Federal election housing policy announcements by the two major parties fall short of what’s needed to end the housing crisis, according to a peak body.
Everybody’s Home spokesperson Maiy Azize said the major parties needed to present more ambitious housing policies.
Ms Azize said the advocacy group, which represents a coalition of housing, homelessness and welfare organisations, believed the Coalition plan to allow first home buyers of newly built properties to deduct their mortgage interest payments from their taxable income and Labor’s proposal to allow all first home buyers to purchase a home with a five percent deposit and a $10 billion commitment to build 100,000 new homes were not enough.
“The promises made by the major parties fall well short of what’s needed to address the housing crisis — in fact, some elements could make it even worse,” she said.
“The Coalition’s proposal to allow mortgage payments to be tax deductible for first home buyers is a form of negative gearing for non-investors, a move that will give more help to people on high incomes and could push home prices even higher. To make housing more affordable, we need to get rid of tax breaks when it comes to property, not create more.”
Ms Azize said Labor’s home deposit support for first-home buyers would also add to demand.
“Building 100,000 homes is a good step, but they aren’t guaranteed to be affordable. Australia doesn’t just need new homes, we need homes that people can actually afford,” she said.
“To turn the housing crisis around, the next federal government must invest significantly in building more social housing; low-cost rentals that are guaranteed to be affordable and won’t drive up demand and house prices.
“We have a social housing shortfall of 640,000 homes in this country and it’s growing.”
