Real Estate
1 March, 2026
More homes are the answer - not more taxes (HIA)
The Housing Industry Association (HIA) on Tuesday told the Senate Select Committee on the Operation of the Capital Gains Tax (CGT) Discount that targeting property investors will do nothing to ease the pressure on homeowners or renters.
The Housing Industry Association (HIA) on Tuesday told the Senate Select Committee on the Operation of the Capital Gains Tax (CGT) Discount that targeting property investors will do nothing to ease the pressure on homeowners or renters.
“Housing supply is the core issue driving Australia’s housing crisis. The only real solution is to build enough homes to meet demand,” said HIA Managing Director, Jocelyn Martin.
“Whether you are concerned about home ownership, rental affordability, government revenue or fairness between investors and owner occupiers, the answer is the same: build more homes.
“If you want lower prices, you need more homes.
“If you want lower rents, you need more rental stock.
“If you want stronger public finances, you need more construction activity.”
Ms Martin said new housing already carries a significant tax burden, meaning every additional home built generates around $200,000 in direct tax revenue.
“If governments want more revenue from housing, they should focus on building more homes. More homes mean more revenue and slower house price growth. More homes also reduce returns to investors and will see them leave the housing market for other opportunities in an orderly way.”
HIA’s submission to the inquiry sets out modelling showing that removing or restricting negative gearing or the CGT discount would reduce dwelling starts, reduce GDP, reduce construction employment and increase rents over time.
“With investors financing around one-third to 40 per cent of all new dwellings in Australia, they are part of the supply solution – not the problem.
“There is a tendency to assume that raising taxes on investors will improve opportunities for younger Australians. But restricting supply only locks in capital gains for existing owners and limits entry for those who come after. It would entrench today’s inequities for decades.
“Fewer homes mean fewer jobs, fewer taxpayers, higher rents and a greater reliance on investors in the housing market,” concluded Ms Martin.