1.1
Labor Senators are supportive of this bill but wish to make some points
about details of the bill and the Government's budget measures to address
housing affordability.
1.2
Labor Senators have confirmed through the inquiry process that there has
been a policy change. The original measure as announced on budget night stated
that foreign and temporary tax residents would be denied access to the CGT main
residence exemption.
1.3
The clarification to state that Australian tax residents (including
temporary tax residents that are also an Australian tax resident) can access
the main residence exemption is welcome. However, this is not how policy
process should be run. A competent Government would have worked through these
impacts before making the announcement on budget night. A competent Government
would not have created confusion in the community.
1.4
This measure is an integrity measure—helping to ensure that foreign
residents are paying the correct capital gains tax on property transactions. In
that spirit, Labor Senators will support the bill.
1.5
However, to claim that it reduces pressure on housing affordability is a
sham. This measure is an integrity measure, and does not increase the taxation
level that foreign residents pay on property transactions. This measure will
not have any meaningful impact on housing demand and on housing affordability.
1.6
Labelling this measure a 'housing affordability' measure also shows that
the Government is clutching at straws. If the Government was serious about
housing affordability, it would work with Labor Senators to wind back negative
gearing and the capital gains tax discount.
1.7
The Government has effectively waved the white flag on housing
affordability.
1.8
Labor is the only party with a plan to increase affordable housing
supply and tackle demand issues associated with the most generous tax
concessions in the world.
Senator
Chris Ketter Senator Jenny
McAllister
Deputy Chair Australian
Labor Party, NSW
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