The National Housing Accord’s target of building 1.2 million homes over five years, or 240,000 annually, is falling way behind, with only 307,635 dwellings completed over the first 21 months of the Accord, 112,365 (27%) fewer than the run rate required to meet the target.
The Albanese government hoped that the federal budget’s changes to negative gearing and capital gains tax (CGT) would help stimulate construction by encouraging investors to purchase newly built dwellings over established ones.
Under the changes, investors will only be able to negatively gear if they purchase or build a new home. Investing in a newly constructed home will also give them the option of applying the old 50% CGT discount or the new CGT indexation method.
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