It’s the 1.2 million residence query — easy methods to repair Australia’s housing disaster.
Given there appears to be many alternative opinions and AI seems to have the reply to all the things nowadays, I made a decision to ask ChatGPT.
The solutions would possibly shock you.
This was the query: ‘If a authorities had one single coverage transfer to instantly deal with a housing disaster, what would it not be?’
![](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 1280 720"%3E%3C/svg%3E)
The housing disaster will probably be a significant subject for voters within the 2025 federal election. Image: iStock.
RELATED: Scary motive first-home purchaser used AI to buy property
It answered by saying essentially the most generally advisable single transfer was to “restrict (or take away) destructive gearing for all future purchases of present properties, whereas retaining it just for newly constructed properties”.
Why? “It discourages speculative demand for present housing. Traders who depend on destructive gearing primarily buy present inventory slightly than financing new provide. Limiting destructive gearing to new builds would nudge investor demand into creating further dwellings.”
ChatGPT had some attention-grabbing solutions when requested easy methods to repair the housing disaster. Picture by: Kirill KUDRYAVTSEV.
MORE NEWS: ‘Self defeating’: important flaw unravels Albo housing plan
Easy methods to get into the Gold Coast marketplace for beneath $700k
Nonetheless, a extra particular query about what the Australian authorities ought to do evoked this response:
“There’s no silver bullet, however essentially the most impactful single coverage transfer would possible be huge funding in social and reasonably priced housing. In fact, this could should be paired with planning reforms, tax modifications (akin to rethinking destructive gearing and capital positive factors tax concessions), and tenant protections to completely deal with the disaster.”
Property analyst Michael Matusik agrees. Mr Matusik believes all state and territory governments ought to scrap stamp duties, and that the federal authorities ought to take away the investor capital positive factors tax low cost and negatively gearing tax breaks for resale properties.
A basic view of show properties in Edmondson Park in Sydney, Australia. Picture: Brendon Thorne.
“This might be phased in over a five-year interval for traders who at the moment destructive gear,” Mr Matusik stated.
“Additionally, destructive gearing for brand new properties would solely keep in play for 5 years too.”
He would additionally impose a broad-based land tax on all properties set at between 2.5 per cent and 5 per cent, and introduce a capital positive factors tax on all properties, with the share set to say no on size of time held.
All people’s House spokesperson Maiy Azize is looking on events and candidates to scrap investor tax handouts, like destructive gearing and the capital positive factors tax low cost, within the lead-up to the federal election.
Homes in Sydney’s Impartial Bay. Picture: Brendon Thorne.
“It’s unfair to spend billions of {dollars} propping up traders and pushing up prices whereas individuals on low and center incomes are left behind,” Ms Azize stated.
However Ray White chief economist Nerida Conisbee stated it was “too simplistic” accountable destructive gearing for top home costs.
“Many international locations with out destructive gearing additionally face important housing affordability challenges,” Ms Conisbee stated.
“The primary drivers of Australian home costs embody restricted housing provide in fascinating areas, robust inhabitants progress, strict planning laws, and the focus of jobs in main cities.
The Australian Federal Treasurer Dr Jim Chalmers MP throughout a pre-budget deal with in Brisbane. Image: NewsWire/Tertius Pickard.
“Unfavourable gearing is only one piece of a posh puzzle that features broader financial
components like family revenue ranges, lending insurance policies, and development prices.”
It comes as The Greens launch a direct attraction to Labor forward of Tuesday’s finances, calling on federal treasurer Jim Chalmers to urgently reform destructive gearing and capital positive factors tax.
Labor directed Treasury to undertake modelling on reforms to destructive gearing and capital positive factors tax over the past time period of presidency, and a rising variety of backbenchers quietly supported the thought of overhauling the tax advantages.
However the treasurer killed off coverage modifications in that space as a result of he was not satisfied modifications would increase housing provide.
The rising stress on Labor to institute extra bold coverage to deal with the housing disaster comes as analysis commissioned by the Property Council revealed Australia was set to fall wanting the bold 1.2 million nationwide Housing Accord purpose by 462,000 properties, probably pushing common rents up by almost $100 every week.
NSW at the moment faces the largest hole of 185,000 properties, which, if crammed, may see rents lower by $130 every week.
In Queensland, filling 96,000 properties would imply an $80 saving every week, whereas Victorians may save $50 every week in lease ought to the 71,000 housing shortfall be crammed.
The Property Council is looking for Labor to institute a variety of insurance policies to fill the housing hole, akin to doubling the $3bn New House Bonus, which presents states incentive funds for constructing extra properties than their share of the goal.
“2025 is the yr for Australia to redouble our housing provide efforts with the urgency and dedication this disaster calls for,” Property Council chief government Mike Zorbas stated.
“Lacking the goal by 462,000 new properties by July 2029 would set off a housing affordability time bomb.”
