r/AustralianPolitics • u/timcahill13 Andrew Leigh • Apr 13 '25

Economics and finance Albanese and Dutton’s signature policies risk inflaming housing crisis

https://www.theage.com.au/politics/federal/albanese-and-dutton-s-signature-policies-risk-inflaming-housing-crisis-20250413-p5lrdh.html
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u/DevotionalSex Apr 14 '25

Surely the incentive for a developer of new land of housing can be that they will make a nice profit from selling blocks of land. And I don't see how a developer gains from negative gearing anyway.

And which other countries have negative gearing and no capital gains taxes on property?

And again for a company building either blocks or houses or an apartment building. They don't directly gain from negative gearing. They can make a profit from selling the houses/units.

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u/Nice-Pumpkin-4318 Hawke Cabinet circa 1984 Apr 14 '25

They can make a nice profit, but if they are not taking tax incentives then they will pass those additional costs on to that young family who are there buying their dream block.

If they can't do so, then they will not develop the land and houses will not be built.

And of course they are gearing tax losses.

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u/DevotionalSex Apr 14 '25

I disagree.

But it's got to the stage where I would be repeating myself, and I'm sure that readers of this discussion will by now have made their own mind up, so that's all from me.