Sydney’s housing affordability crisis is being artificially exacerbated by “lunacy” tax incentives, a new report has claimed... Promote downsizing through altered pension means test, Lobby Group urges...
'Lunacy' negative gearing distorting Sydney housing market shows report
Sydney’s housing affordability crisis is being artificially exacerbated by “lunacy” tax incentives, a new report has claimed.
According to the analysis by the UNSW's City Futures Research Centre, up to 90,000 properties are sitting empty in some of Sydney’s most sought-after suburbs as investors chase capital gains over rental returns.
The analysis’ researchers, Professor Bill Randolph and Dr Laurence Troy, said this is thanks to the "perverse outcomes" of tax incentives such as negative gearing, Fairfax has reported.
“Leaving housing empty is both profitable and subsidised by government," Randolph and Troy told Fairfax.
"This is taxation lunacy and a national scandal."
According to Fairfax, the 2011 census revealed that in Sydney's “emptiest” neighbourhood of the CBD, Haymarket and The Rocks, one in seven dwellings was vacant.
Promote downsizing through altered pension means test, Lobby Group urges
Elderly home owners who are asset rich but have little income should be afforded the ability to downsize by a more accommodative aged pension means testing program according to one property lobby group.
The Property Council of Australia (PCA) believes many older Australians are effectively trapped in unsuitable homes, as they wish to move to age-appropriate accommodation yet can’t do so because of the effect selling their family home would have on their pension eligibility.
“Many older Australians have a desire to move to more age appropriate accommodation, like a retirement village apartment or villa, but will be hit with a reduction in their income despite owning exactly the same amount of assets if they make the move,” PCA executive director – retirement Mary Wood said.
“The Property Council is proposing an adjustment be made to the means test, to exempt some proceeds from the sale of the family home by full-rate age pensioners aged over 75. The cost to the Budget is minimal,” Wood said.
Sydney’s housing affordability crisis is being artificially exacerbated by “lunacy” tax incentives, a new report has claimed.
According to the analysis by the UNSW's City Futures Research Centre, up to 90,000 properties are sitting empty in some of Sydney’s most sought-after suburbs as investors chase capital gains over rental returns.
The analysis’ researchers, Professor Bill Randolph and Dr Laurence Troy, said this is thanks to the "perverse outcomes" of tax incentives such as negative gearing, Fairfax has reported.
“Leaving housing empty is both profitable and subsidised by government," Randolph and Troy told Fairfax.
"This is taxation lunacy and a national scandal."
According to Fairfax, the 2011 census revealed that in Sydney's “emptiest” neighbourhood of the CBD, Haymarket and The Rocks, one in seven dwellings was vacant.
Promote downsizing through altered pension means test, Lobby Group urges
Elderly home owners who are asset rich but have little income should be afforded the ability to downsize by a more accommodative aged pension means testing program according to one property lobby group.
The Property Council of Australia (PCA) believes many older Australians are effectively trapped in unsuitable homes, as they wish to move to age-appropriate accommodation yet can’t do so because of the effect selling their family home would have on their pension eligibility.
“Many older Australians have a desire to move to more age appropriate accommodation, like a retirement village apartment or villa, but will be hit with a reduction in their income despite owning exactly the same amount of assets if they make the move,” PCA executive director – retirement Mary Wood said.
“The Property Council is proposing an adjustment be made to the means test, to exempt some proceeds from the sale of the family home by full-rate age pensioners aged over 75. The cost to the Budget is minimal,” Wood said.
