Proposed changes to negative gearing and capital gains tax by the Federal Government aim to help first-home buyers enter the property market. The government expects these reforms to shift 75,000 properties from investors to owner-occupiers and slow house price growth.
However, the Real Estate Institute of Australia President, Jacob Caine, has warned that the changes could instead trigger a rental crisis. He argues that reducing investor incentives may lead to a decrease in rental supply, driving up rents and making housing less affordable for tenants.
The reforms are part of Labor's broader housing policy, but critics say the potential benefits for first-home buyers could be offset by negative impacts on the rental market. The debate continues as stakeholders await further details on the implementation of the tax changes.
