Labor flags first home buyer subsidies for next election

After last week junking their negative gearing and capital gains tax reforms taken to the past two elections, Labor’s financial services spokesman Stephen Jones hinted that it will offer first home buyer subsidies as part of its election platform:

“We took those policies [negative gearing and capital gains tax reforms] to the last two elections. They didn’t find favour with the electorate,” Labor’s financial services spokesman Stephen Jones said.

“We need to ensure that the policies we take to the next election are going to be able to assist first home buyers to get into the market.”

“Assist first home buyers to get into the market” is code for subsidies like first home buyer grants. And these types of stimulus are self defeating from an affordability perspective, since they bid-up prices and make housing less affordable over the longer-term.

Australia’s property lobby must be feeling very proud of itself, since they have managed to gain bipartisan support for rising property prices.

Next on its list is to reboot mass immigration.

Resistance is futile. Australia is the property equivalent of a narco state.

Unconventional Economist
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Comments

  1. And the price of houses goes up by whatever the subsidy is. These people are traitors to this country.

    I seem to remember at the last election they took Medicare to the world. That was a vote winner.

    • strange economicsMEMBER

      Albo won’t announce the price his split investment property sold for on the auction site.
      Transparency plus !
      Sold for 2.35 million according to the media online, a 100% increase over 4 or so years. and 10 % over the range price…Excellent deal, no doubt negative geared.
      Perfect for an FHB?
      At least he has increased supply !

          • Where’s the conflict of interest? You know he owned a property. That’s all you really need to know.

      • Anders Andersen

        He can’t hide it, it will eventually end up on the Valuer Generals Office or the NSW equivalent. If you know someone in the RE industry they should have access to the sale price after about 6 wks from Corelogic’s data base. Vast majority of RE agents pay an annual fee for access. Or try this site in around 3-6 months: http://house.speakingsame.com

          • Ginger posted this a few days ago:

            “Robert Gordon Menzies retired as Prime Minister on 20 January 1966. At 71 years of age, he planned to withdraw from politics and devote his time to writing, reading and travel.

            In 1965, a group of Menzies’ supporters and friends, aware that after years of public service he was not a wealthy man, had clubbed together to buy a suitable home for his use on retirement. Menzies had at first resisted, but had agreed to the plan when it was decided to sell the home after his death and donate the proceeds to charity.”

  2. Smart politics. Can see this leading to some serious corruption of the public finances. Not fixing the root cause, of course.

  3. In news just to hand, Stephen Jones said every migrant visa under Labor would include an automatic first-home buyer subsidy. “After 15 huge years of net migration averaging 215,000, we had to agonise for 30 seconds, before we rubber-stamped the Coalition policy to increase this by just 20,000. Now, our generous home-ownership policy takes away that pain.”

  4. Seems you have to be in property or commodities to beat the inflation required to pay off debts- is there any alternative?

  5. It’s a good defensive policy. Endless featureless suburbs with inadequate infrastructure is slow to claim during a ground war, and all those brick veneer homes and apartment blocks are excellent cluster bomb absorption devices.

  6. It sucks, but people need to stop blaming Labor.

    The fault lies with the populace – they want to be Rentiers, and want the state to promote and protect their Rentier aspirations. They will keep voting for those that promise to effectively, by proxy, take from others and give to them, their desired unearned income.

    No wonder young people are now ‘Laying Flat’, especially with regard to the wealth being extracted from them via property: https://www.washingtonpost.com/world/asia_pacific/china-lying-flat-stress/2021/06/04/cef36902-c42f-11eb-89a4-b7ae22aa193e_story.html

    • Anders Andersen

      THIS: “The fault lies with the populace”

      We stopped being egalitarian at least 3 decades ago; it sh!tes me to tears hearing the media etc describing this country like that. You now have self-employed tradies calling themselves “small business operators”, tradies on EBAs whinging about the tax they pay on bloody good incomes (by any measure), voting LNP and failing to understand how those incomes came about, blabbing on about how hard they work, with a large slab thicker than two besser blocks laid end to end.

      Nearly everyone is interested in only themselves.

      • working class hamMEMBER

        Tradies are always an easy target, for the media, plus any Uni graduate with a weak back and payslip.
        The amount of SME rorting of tax loopholes is by Govt design, plain and simple. Blaming people for playing the cards they are dealt is a waste of time at best.
        As for EBA workers whinging about tax, chalk me up. I didn’t realise pointing out structural flaws in Aust society was only for the tertiary educated, which most tradies are, whether you deem that education or not, is beside the point.
        Belittling someones intelligence for their career choice is a little elitist, the trades sector is ridiculously large and varied, with tiers just like any other industry, something not highlighted as much in other sectors.

      • kierans777MEMBER

        We stopped being egalitarian at least 3 decades ago;

        Which was when neoliberal economics really ramped up. In this case, correlation is causation.

        … tradies on EBAs whinging about the tax

        This surprises me. The Liberals will have them paying less tax. By getting paid less wages.

        Based on discussions I’ve had, I think tax is the easy target. People are feeling squeezed. So they want to pay less tax to have more money in the their pocket. But they’re angry at the wrong thing.

    • It wasn’t negative gearing or half CGT policy that lost them the vote anyway. It was a Queensland loss if I recall and concern over coal jobs etc.. otherwise the platform was quite popular but failed to cut through to blue collar QLD folk.. I think Labor are as lost as ever. Liberals light.

      • kannigetMEMBER

        Yeah, Announcing an increase in visas for elderly relatives while actively campaigning in the mining electorates of QLD was the nail. Polling was doing really well for them until that announcement. A Mate of mine who was in the LNP ( Since quit and now actively campaigning for an independent ) at the time reckoned it was the loss of coal jobs, until I showed him the numbers.

        On first preferences in those seats there was a swing away from both the ALP and the LNP to one nation and palmer, who then past the preferences to the LNP. The LNP only one by those seats..

  7. DodgydamoMEMBER

    Resistance is futile indeed. It’s what the chumps keep voting for because mostly they can’t think for themselves…

  8. Lord DudleyMEMBER

    Yes, yes, yes! Misallocate more capital! Feed it ALL to the real estate sector. Destroy all trade exposed sectors except mining and agriculture.

    Then open the floodgates with 300k NOM to drive the wages of Australia’s unlanded youth down.

    Any young person with get up and go should emigrate.