Why CGT Changes Won’t Solve Australia’s Housing Crisis
About this episode
The episode discusses the impact of capital gains tax and negative gearing on Australia's housing crisis and challenges common assumptions about investor incentives and affordability.
Capital gains tax reform and negative gearing have become central to Australia’s housing debate—but are these policies actually capable of improving affordability? In this episode, we unpack the real role of tax settings in the property market and question whether current reform discussions are addressing the right problem. The conversation explores how capital gains tax discounts work in practice, why they exist, and what changes could mean for investor behaviour. We also dive into the broader housing ecosystem—covering rental vacancy rates, population growth, and the heavy reliance on private investors to supply rental housing. Along the way, the episode challenges the assumption that reducing investor incentives will automatically improve affordability. A key theme is unintended consequences. What happens if investors exit the market? Where does that capital go? And how might changes to CGT or negative gearing impact rental supply, development activity, and long-term housing outcomes? The discussion also touches on the rise of build-to-rent, government incentives, and the shift toward institutional investment. This episode offers a grounded, data-informed perspective for…
People in this episode
Host: Chris Bates
Guest: Cameron Kusher
Topics covered
- capital gains tax
- negative gearing
- housing affordability
- investor behavior
- rental supply
- housing reform
Keywords
- housing crisis
- tax reform
- investor incentives
- rental vacancy rates
- population growth
- institutional investment
Mentioned in this episode
Organizations: Australia, Capital Gains Tax, negative gearing, build-to-rent
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