Australia’s deep housing crisis is causing enduring and widespread harm. A key impact is that it is increasing inequality.
The children of parents who have paid off their mortgage and have disposal income are far more likely to become home owners. They will be better off as a result. On the other side of the coin, a growing proportion of young Australians feel they will never be in a position to buy a home and will be lifelong private renters.
It has been powerfully argued that an overly generous tax regime has fuelled the housing crisis. Figures released recently by the Parliamentary Budget Office reveal the enormity of the tax revenue forgone due to negative gearing and capital gains tax concessions on residential property. This lost revenue over the past ten years totalled A$84.11 billion.
