Scrap negative gearing if you want our votes, say Greens

Adam Bandt demands the PM scrap negative gearing and capital gains tax discounts to bankroll the doubling of rent assistance, a rent freeze and more affordable housing.

Greens leader Adam Bandt. Picture: NCA NewsWire / Martin Ollman

Greens leader Adam Bandt has called on Anthony Albanese to scrap negative gearing and capital gains tax discounts to bankroll the doubling of rent assistance, a rent freeze and more government-owned affordable housing.

Parliamentary Budget Office modelling commissioned by the Greens shows that ending tax breaks for property investors would raise $74.1bn over the decade and offset expenditure on the left-wing party’s housing wishlist.

Mr Bandt argues the Greens’ housing policies, valued at $69.4bn, could be legislated in parliament by July and deliver a $4.7bn improvement to the budget bottom line.

 

In a National Press Club speech on Wednesday, Mr Bandt will threaten to oppose the Prime Minister’s $10bn Housing Australia Future Fund unless he ­delivers on the Greens’ demands.

Mr Bandt, who made similar threats to scuttle the government’s safeguard mechanism and 2030 emissions reduction target before folding in last-minute negotiations, will say if Labor “wants our support on its housing bill, it needs to come to the table on the rental crisis”.

The Greens’ five-point housing package includes doubling the rate of commonwealth rent assistance at a cost of $43.6bn, building 225,000 publicly owned properties over a decade, abolishing the 50 per cent capital gains discount, establishing a rent-freeze housing fund for state governments and phasing out investment property deductions. The expenditure review committee of cabinet has been looking at raising rent assistance in the May budget but is likely to opt for an increase in the single parenting payment instead.

In his speech, Mr Bandt will say “Labor is actively choosing to make the housing and rental ­crisis worse” and chastises the government for committing to fund stage-three tax cuts and AUKUS submarines.

“Labor is the party of property moguls. The Greens are fighting for renters and affordable homes for all. If Labor wants our support on their housing bill, they need a package that meets the scale of the crisis,” Mr Bandt will say.

“Labor negotiated on the safeguard bill, they recalled parliament to deal with power bills, and they should show the same ­urgency on housing and rents so that everyone has an affordable place to live.”

Treasury’s tax expenditure statement released in February showed that about 610,000 people benefited from capital gains tax discounts in 2019-20.

The statement said “revenue foregone is elevated in 2021-22 and 2022-23 due to higher capital gains realisations for individuals” before reducing in subsequent years. The Greens say the maj­ority of those benefiting from capital gains tax discounts and negative gearing are male, high-income earners aged over 50.

With the Coalition opposed to the housing fund, the government needs the Greens’ 11 senators and two crossbenchers to get its legislation through the parliament when MPs return for the budget. Independent ACT senator David Pocock has voiced concerns about the government’s signature housing policy, arguing it is underfunded and won’t keep up with affordable housing ­demand.

In his speech, Mr Bandt will say rents are rising six times faster than wages and that a shortage of 640,000 public, community and affordable homes is “increasing every year”.