The federal government appears trapped in a state of denial regarding the impact its changes to negative gearing and capital gains tax are having on the property market. Instead of addressing the reality of falling house prices and rising rents, Labor MPs cling to budget projections that forecast a minimal impact on the housing sector. These projections are divorced from reality.
The government is already attempting to distance itself from the fallout by blaming Treasury modelling, but that political manoeuvring provides cold comfort to everyday Australians left to pay the price.
