While abolishing negative gearing might seem like a quick
fix, it overlooks deeper issues impacting housing affordability, such as
limited land supply, restrictive zoning laws, and cumbersome approval processes
that hinder housing development.
Addressing these challenges would have a more meaningful
impact on housing accessibility than removing a tax benefit that keeps the
rental market viable.
What’s needed is a comprehensive approach to affordability,
one that involves expanding housing supply, simplifying planning processes, and
incentivizing new development.
Penalising investors by removing negative gearing would lead
to increased rents, greater market volatility, and fewer affordable housing
options for Australians.
By recognising the critical role that property investors
play, we can work toward genuine, long-term solutions to affordability rather
than short-sighted policies with unintended consequences.
In the end, negative gearing serves as a stabilising force
in an otherwise volatile market, making it a critical component of Australia's
housing ecosystem.
The answer to housing affordability lies not in dismantling
this policy but in addressing the root causes that genuinely affect home prices
and rental availability.
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Jason Gwerder
Friday, 21 February 2025
