RMIT experts available to comment on potential changes to capital gains tax and negative gearing

RMIT experts available to comment on potential changes to capital gains tax and negative gearing

The Albanese government is expected to announce changes to the capital gains tax discount and negative gearing in tonight’s federal budget. RMIT experts are available to comment.

Dr Liam Davies, Lecturer, Sustainability and Urban Planning 

"Reform to the way housing is treated by the taxation system is very welcome news. The last 30 years have seen housing prices grow much faster than wages, making housing increasingly unaffordable.  

"The combination of negative gearing and capital gains tax discounts encourages speculative investors to purchase housing, often outbidding first homebuyers and excluding many from home ownership. 

"Reform to negative gearing and capital gains tax discounts are unlikely to cause a large decrease in housing prices, but they should slow the growth in future, allowing wages to catch up."

Dr Liam Davies is an urban policy Lecturer in Sustainability and Urban Planning at RMIT University. His research investigates transport, housing, taxation, and land use planning with a focus on equity and policy reform. 

 

Jago Dodson, Professor of Urban Policy and Director of the Centre for Urban Research 

"While reducing negative gearing and capital gains tax concessions are important steps to redress the imbalance in housing distribution between investors and lower-income owner-occupiers, many issues remain across our housing system.   

"Future attention should move beyond investors to consider owner-occupied housing as a source of capital gain and opportunities to expand the taxation regime to this tenure category, potentially generating further revenue from our inflated housing markets. 

"The anticipated changes to negative gearing and capital gains tax concessions should be viewed as the first steps in taxation reform in housing."

Jago Dodson is Professor of Urban Policy at RMIT University and works in the Research and Innovation Portfolio as the Director of the Urban Futures Enabling Impact Platform.

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

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