Brett Warren , National Director – Metropole Group
This week’s Economic Reform Roundtable in Canberra has sparked some bold ideas, but not all of them are in the best interests of everyday Australians.
One proposal from union representatives was to scrap negative gearing and reduce Capital Gains Tax concessions.
It’s a familiar tune, but let’s not forget what happened the last time this was trialled in the 1990s: investor activity plummeted, rental supply dried up, and rents skyrocketed. The policy was reversed within two years. So, what’s different now?
The truth is, not much. Investors still play a critical role in providing rental accommodation. If we push them out of the market, who steps in?
Governments aren’t building enough social housing, and new investors aren’t ready to fill the gap at scale. So, without investors, tenants face fewer options and higher rents.
And let’s talk about the construction industry. Many union members work in property and development. If investor demand drops, so does construction activity. That means fewer jobs, slower economic growth, and less housing supply – exactly the opposite of what we need.
Negative gearing and CGT concessions aren’t loopholes – they’re incentives that help balance risk and reward. They encourage investment, boost housing supply, and support the broader economy.
At a time of record low rental supply as well as trying to lift productivity and resilience, as the roundtable aims to do, dismantling these policies would be a step backwards. Let’s build smarter solutions that support renters, workers, and investors alike. Because when property policy works, Australia works. We need collaboration – not division – if we’re serious about solving housing affordability and securing a future that benefits all Australians.
