CGT Changes Could Hit Housing Supply as Property Groups Warn of Rent Pressure

Australia’s housing debate is shifting toward tax policy, with industry groups warning that changes to investment incentives could worsen supply shortages and push rents higher.

Property and construction bodies argue that winding back the capital gains tax discount could reduce the number of new homes built each year and complicate the government’s plan to increase housing supply.

At the centre of the debate is whether tax reform can improve affordability without discouraging investment in new housing.

Proposed Tax Changes Target Investor Incentives

The federal government is reviewing the current 50% capital gains. . .