CGT, negative gearing changes could worsen housing shortage, modelling warns
Proposed changes to capital gains tax and negative gearing ahead of the Federal Budget could reduce housing supply, push up rents and deliver only marginal affordability gains, according to new modelling.
As the housing crunch continues, the Federal Government is looking more closely at capital gains tax and negative gearing. (Image source: Jandrie Lombard/Shutterstock.com/API Magazine)
The capital gains tax (CGT) discount and negative gearing debate has reignited as we head towards the Federal Budget in May
, with the government currently expected to announce some form of change.A key question is who will benefit from these changes?
Reducing the capital gains tax discount
The Federal Government is reportedly considering reducing the CGT discount.
Will this improve housing affordability? Some reports suggest house prices may…
