States want negative gearing and CGT reform

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By Leith van Onselen

Yesterday’s housing speech from Scott Morrison’s (analysed here) has drawn a luke warm reception from the states. While they have welcomed the possibility of receiving incentive payments from the Commonwealth in return for opening-up land and relaxing planning, they also want the federal government to curb negative gearing and the capital gains tax (CGT) discount, which they believe is artificially pumping demand. From The AFR:

Labor Treasurers of South Australia, Queensland and Victoria said Commonwealth policy must also play a role.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.