1. Aussie Post Bank to fund a National Housing Authority to coordinate with the states
Establish a National Housing Authority to recommend necessary assistance to housing authorities in each state, including assistance on finance, building materials and labour. The public Aussie Post Bank will provide loans to state housing authorities, at the recommendation of the National Housing Authority, to develop rental properties that charge only economic rents rather than market rates.
2. Negative gearing
Abolish negative gearing for properties sold under a certain price (the threshold), with new built exempted. For existing assets, negative gearing still applies until the property is sold. The goal is to free up and encourage more supply of affordable housing and put downward pressure on the lower end of the housing market. Given that property price varies vastly between different regions, the exact threshold will be determined for each region after consultation with local authorities and reviewed on a regular basis.
3. Capital gains tax
Halve the capital gains tax discount from 50% to 25% for assets sold under a certain price (the threshold). This will result in a decrease in tax concession for investors in “cheap” properties, and therefore reduce speculative behavior in the lower end of the housing market. The exact threshold will be determined for each region after consultation with local authorities and reviewed on a regular basis.
