He concludes: ‘The point of Labor’s reforms is to remove a market distortion that has seen house prices in Australia rocket ahead of incomes, pushing many young families into financial stress without increasing housing supply. Home prices have skyrocketed due to a market distortion.
‘That’s the important point to remember in this debate. The $3000 tax refund that a punter might receive this year does not appear magically from nowhere – it’s an income tax reduction that the vast majority of taxpayers don’t receive. If it boosted housing supply, as it was intended to do, it would help everyone. But it does not.
‘For rent-seekers, though, it must be held in place along with the capital gains tax concession – not for all those three-grand tax refunds, but to continue pumping up credit growth in the banking system.’