Curtailing negative gearing and the capital gains tax discount would slightly reduce home prices for buyers, but put upward pressure on rents, housing economists say.
Increasing taxes on property investors would likely deter investment in new housing and exacerbate the undersupply of houses and apartments, they said.
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John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
