Products – The Centre for Independent Studies

Submission to the Inquiry into Housing Affordability and Supply in Australia

Peter Tulip
13 September 2021
Submission to the Inquiry into Housing Affordability and Supply in Australia

Housing in Australia is too expensive. Families on lower incomes cannot afford reasonable accommodation. Aspirations to home ownership are fading. (Section 1).

A large body of international and Australian research finds that a major reason housing is so expensive is land use regulations. Claims that these restrictions preserve neighbourhood amenity are exaggerated and unrepresentative. (Section 2).

Negative gearing and the discount for capital gains tax have very small effects (1 — 4%) on housing prices (Section 3).

Immigration boosts housing prices and needs to be better co-ordinated with housing supply (Section 4).

The federal government spends a lot of money trying to improve housing affordability, but demand-side subsidies merely reshuffle a fixed housing stock. We need to boost supply (Section 5).

The federal government needs to improve incentives for state and local governments to approve more housing. Making infrastructure payments conditional on better performance would help. (Section 6).

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