Submission: Capital Gains Tax Discount

The Tenants' Union of NSW welcomed the opportunity to provide a submission to the Federal Government Select Committee on the operation of capital gains tax discount. 

We have a long standing interest in reforms to the capital gains tax settings for a fairer, more stable renting experience. We have seen first hand the inequality of our housing system and the negative impact the capital gains tax discount has on housing affordability. 

The interaction of capital gains tax discounts and negative gearing have further contributed to housing inequality. Both of these tax settings encourage speculation in housing investment which most concerning to us is the flow on impact this has on rental prices and quality of the housing experience. 

The Tenants' Union would like to see the Federal Government:

1. Ensure the tax treatment of property ownership, including for investment purposes, aligns with community expectations for residential occupation of housing to be stable, long term and affordable for occupiers,
2. Remove capital gains tax discounts and other tax settings which incentive owner behaviour away from providing stability of tenure for renters or prioritise the financial treatment of housing above its usage,
3. Revise lending practices to ensure loans take proper consideration of costs and risks of owning property for investment purposes, and
4. Redirect expenditure previously funding tax discounts towards, funding gold standard energy efficient public and community housing, funding work to ensure compliance with Better Deal for Renters and revise the Better Deal to include ensuring stable, long term and affordable housing and to ensure funding for local tenants advice services across Australia to meet the needs of the population and the National Association of Renters' Organisations to provide national coordination and expertise to support and engage with renters experience of federal housing issues