Scott Morrison says hes going to the UK to talk to the Tory Government about what they are doing on housing affordability.
Well he needs to start by asking the Tory Government about its 2015 reforms to negative gearing. In the UK, the ability to deduct investment property losses against salary or wage income is restricted.
In the Budget speech announcing the reforms, former Chancellor of the Exchequer, George Osborne, said:
We will create a more level playing-field between those buying a home to let, and those who are buying a home to live in.
Buy-to-let landlords have a huge advantage in the market as they can offset their mortgage interest payments against their income, whereas homebuyers cannot. [8 July 2015]
In Australia, the Coalition continues to allow investors to access the most generous tax concessions in the world when it comes to purchasing a property.
Its time the Turnbull Government put policy ahead of politics on housing affordability.
We know that Malcolm Turnbull and Scott Morrison know that something has to give on negative gearing, because they were rolled in Cabinet pushing reforms in 2016.
And Scott Morrison was on the record last year arguing that there were excesses with negative gearing.
The Federal Governments obfuscation and pigheadedness got to the point where even former NSW Liberal Premier Mike Baird called out Malcolm Turnbull over the inaction.
When it comes to policy and delivery, Malcolm Turnbull and Scott Morrison would prefer to risk Australias AAA credit rating and leave generations of young Australians without hope of buying a new home.
Meanwhile, new Assistant Minister Michael Sukker continues to show himself out of his depth, saying: Well need to lead by example and with the levers that we control ensure that they are being pulled to address housing affordability to the greatest extent possible, while insisting that the Government will not countenance reforms to negative gearing or the capital gains tax discount. Some leadership!
Only Federal Labor has a responsible plan to level the playing field by reforming negative gearing concessions so that young families have a shot at the great Australian dream of owning their own home.