Greens call for review of whether tax breaks are delivering housing supply
The Greens’ spokesperson on Housing, Tourism and the North Coast, Jan Barham MLC, has called for a review of tax concessions for investment properties and whether they are in fact improving the availability of rental housing stock.
“As a North Coast resident I am concerned at the evidence of 900 homes in both the Byron and Tweed local government areas being used for tourism purposes,” said Ms Barham.
“It is possible that many of these properties are being claimed as investment properties and despite the use being unapproved at this time, there hasn’t been an examination of whether the Federal Government’s negative gearing and capital gains tax provisions are supporting a loss of housing stock and the erosion of community.”
For many years the Byron Shire community has raised concerns about the impact of holiday letting on the availability and affordability of housing in the shire. Recently the Tweed council staff presented a report to alert council to the use of dwellings in that shire for tourism rather than the approved permanent residential use.
“The Land and Environment Court decision in 2013 about a case in Gosford made it very clear that the use for tourism accommodation of approved dwellings in residential areas was prohibited. Now councils have to reconcile this decision with what is happening in each council area.
“The Federal Government’s tax discussion paper, which was released earlier this week, shows that the total tax deductions claimed for investment properties have grown and are now larger than the total rental income earned by Australian property owners.
“If this substantial tax break is being used on the North Coast for commercial gain by turning residential properties into tourist accommodation, it is actually working against the desired outcome of providing more rental housing stock.
“Some form of review and regulation is needed to ensure that generous bonus to property investors delivers some form of social benefit,” Ms Barham concluded.
For further comment, contact Jan Barham directly on 0447 853 891