Owning a home used to be a milestone…now it’s a miracle—here’s why

A wild warning about Sydney’s future has reignited calls to overhaul Australia’s tax system.

A top union boss claimed the next generation may not be able to live where they were born—let alone raise families.

And the culprit, she said, is negative gearing.


ACTU secretary Sally McManus urged the Albanese Government to limit negative gearing tax breaks to just one investment property per person.

She made the explosive call during an appearance, warning that without bold action, Australia would effectively abandon younger generations.

‘Otherwise, we’re just saying—too bad young people, you’re not going to be able to ever own a home, forget about even thinking about it,’ Ms McManus said.


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McManus urges bold housing tax reform. Image source: Pexels/MART PRODUCTION
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.


‘Since 2019, the problem has just got worse… unless the government is brave enough to do something about it, we are just abandoning those generations and we think that that is fundamentally wrong.’

Unions plan to present this proposal at the Albanese Government’s productivity roundtable in Canberra in August.

Negative gearing allows property investors to deduct rental losses from their taxable income.

While entirely legal and also applicable to other types of investments, critics argue it gives landlords an unfair tax advantage, pricing out first-home buyers.

‘Young people should have the same aspirations as the generations before them… and at the moment, they don’t,’ Ms McManus said.


She pointed to rising house prices, which have doubled the rate of wage growth over the past 25 years.

‘Now, supply is part of that issue and we’ve got proposals around that,’ she added.

‘But we also think that the tax system has to change too… because that has fuelled those housing prices and taken it out of reach for young people.’

Under the union’s plan, existing arrangements would be grandfathered for five years before limiting the tax break to one investment property.

‘You can have as many investment properties as you want, but in terms of the tax benefit, limit that to one,’ Ms McManus said.

She said just one per cent of investors owned 25 per cent of all investment properties—pushing up prices and locking out everyday workers.

‘Unless we change it, working people can’t live where they work… they can’t live where they grew up,’ she said.

‘A study in New South Wales said that there will be no grandchildren in Sydney because people between the ages of 30 and 40 can’t afford to live there.’


She also encouraged the government to support modular housing as a faster, cheaper option and called for changes to allow superannuation funds to invest more freely in housing.

Treasurer Jim Chalmers appeared open to the broader debate, telling the National Press Club: ‘I expect, I anticipate, I welcome tax being an important part of the conversation.’

However, Prime Minister Anthony Albanese continued to express concerns about negative gearing reform.

He warned that removing tax incentives could reduce housing supply, which could worsen the rental crisis.

‘Well, when it has been looked at, it’s been shown that it won’t assist supply, and that’s the problem here,’ Mr Albanese said in a previous statement.

‘If you didn’t have investment in housing, you wouldn’t have private rentals… less supply and less construction is the concern which is there.’

‘Look, my view is that the key to housing policy is supply,’ he added.


Economists have suggested that changes to negative gearing—along with capital gains tax reforms—could reduce home prices by 2 to 4 per cent in the medium term.

However, they also warned that discouraging investors might hurt the development of new housing, potentially making affordability worse in the long run.

If you’re wondering whether limiting negative gearing would actually solve the housing crisis, not everyone is convinced.

Some experts believe the problem runs deeper than tax policy—and that reforms might not deliver the results people are hoping for.

Here’s a thoughtful take from a well-known finance writer who breaks down the bigger picture.

Read more: Why scrapping negative gearing won’t fix the housing crisis—by Noel Whittaker

Key Takeaways
  • ACTU called for negative gearing tax breaks to be limited to one property by 2030.
  • The proposal would be grandfathered for five years to allow adjustment.
  • Unions warned young Australians are being priced out of owning homes.
  • Economists remain divided on whether reform would help or harm housing supply.

Can Australia fix housing affordability without driving away the very investors who help build it?
 

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No other country allows the tax concessions Australia gives on investment housing. That alone should indicate it needs changing.
Wait for the outrage of the small group benefiting from these tax breaks
 
No other country allows the tax concessions Australia gives on investment housing. That alone should indicate it needs changing.
Wait for the outrage of the small group benefiting from these tax breaks
Mainly politicians and bureaucrats would be top of the list.
 
I’ve said it before, but have no hope of it ever happening - stop charging pensioners sales tax on the down-sized home purchases if the “new” place is going to be their full time residence. If it’s for investment properties, sure go ahead and charge the sales tax. I’d love to sell my ridiculously large home, that’s literally falling down around my ears, but every time I do the math the sales tax puts a damper on the project because of all the other fees and the fact that I only have my aged pension to live on. Those several thousands of dollars staying in my account would help my living costs immeasurably.
Ah, wishful thinking again in my old age!!
 
Ha! Thanks, Liberal Party liars and the entitled wealthy! Shorten tried to ditch the negative gearing rort and it cost him an election. Maybe the timing was off, but thank goodness no one had to let go the upstairs maid or the second gardener!

As for investors - what a crock! These "investors" haven't done much to help the housing crisis or affordability.

So here's a cray-cray idea. Instead of the Govt paying rich people to own multiple properties, why not use the money saved to build houses and buy up existing properties? Of course, not a few MPs would be left weeping in their caviar and Grange but maybe we'd have one or two affordable houses again.
 
I’ve said it before, but have no hope of it ever happening - stop charging pensioners sales tax on the down-sized home purchases if the “new” place is going to be their full time residence. If it’s for investment properties, sure go ahead and charge the sales tax. I’d love to sell my ridiculously large home, that’s literally falling down around my ears, but every time I do the math the sales tax puts a damper on the project because of all the other fees and the fact that I only have my aged pension to live on. Those several thousands of dollars staying in my account would help my living costs immeasurably.
Ah, wishful thinking again in my old age!!
There is NO sales tax on your residential home. There is stamp duty on the purchase, which the buyer pays. If it is an investment property, capital gain tax (with concessions) is payable, but no sales tax. You do not loose your pension on sale, provided you buy a new home I think within 12 months
 
Jacinta Allen wants to bring in a Law that when you sell your house you have to pay Stamp Duty. This way you are double hit with Stamp Duty on selling & buying a house.

Maybe she should be halted with her ridiculous spending, like the rail line that doesn’t help in any way whatsoever…..& all the millions spent on Aboriginal negotiations…. almost a billion dollars !!!

The list just goes on & on……….

Thank goodness we own our home. No way would we sell it just to pay thousands on Stamp Duty as well as pay more thousands Stamp Duty to buy a smaller home😡😡😡😡😡

She is the WEAKEST LINK…..
SHE NEEDS TO GO !!!!!!!🤬🤬🤬🤬
 
No other country allows the tax concessions Australia gives on investment housing. That alone should indicate it needs changing.
Wait for the outrage of the small group benefiting from these tax breaks

Where do you get your info from. Australia is not the only country with negative gearing. Off the top of my head I know that Germany, Japan, Canada and Norway also have negative gearing.

The outrage is mainly from the larger group of people who don't own or understand investing in property.

Number one, if investors are not allowed to claim their losses there will be next to no homes available for rent and where do non home owners then think they are going to live.

We already have a massive undersupply
of rental properties.

The mum and dad investors are slowly leaving the property investment market mainly because of the losses they incur from bad tenants wrecking their properties and the months and months of lost rent while it takes forever to evict these tenants thru the courts.

Even people with large portfolios of property do not invest in property, or anything else for that matter, to make a loss.

Property is now a ridiculous price, far outstripping the actual cost of land, bricks and mortar. But, we the people, are the drongos that kept paying these stupid prices.

Young people need to start at the bottom of the ladder. As their parents did.
The market should be producing basic 3x1 homes without all the frills and whistles at an affordable price. In saying that I don't really know how this is possible.

My electrician told me the other day he's getting a new "work ute". He needs to get $80 000 trade in for his current 3 year old one. His new one a staggering
$120 000, really??? Tradies now earn more than people with university degrees.

Kicking the "haves" in their back pocket is not going to make the difference for the "have nots". It will only make the situation worse. Investors will just find safer options for their money, and those complaining will have nowhere to live


I do believe however that property investors should only be allowed to invest in the state in which they reside.
They should not be able to purchase property in a different state to the detriment of a permanent resident of that state. JMO.
 
Jacinta Allen wants to bring in a Law that when you sell your house you have to pay Stamp Duty. This way you are double hit with Stamp Duty on selling & buying a house.

Maybe she should be halted with her ridiculous spending, like the rail line that doesn’t help in any way whatsoever…..& all the millions spent on Aboriginal negotiations…. almost a billion dollars !!!

The list just goes on & on……….

Thank goodness we own our home. No way would we sell it just to pay thousands on Stamp Duty as well as pay more thousands Stamp Duty to buy a smaller home😡😡😡😡😡

She is the WEAKEST LINK…..
SHE NEEDS TO GO !!!!!!!🤬🤬🤬🤬
It has not happened yet so why is it affecting current decisions
 
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But wait, the other Elephant in the room nobody wants to recognise and it really needs to be seen and that is Immigration.
And to do that is to be branded a racist so we get distracted with Tax.
 
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The problem is the federal government decides immigration numbers, but regardless of immigration numbers the states get no extra money for schools hospitals housing etc.
 
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There is NO sales tax on your residential home. There is stamp duty on the purchase, which the buyer pays. If it is an investment property, capital gain tax (with concessions) is payable, but no sales tax. You do not loose your pension on sale, provided you buy a new home I think within 12 months
My mistake. I meant stamp duty I have to pay when I purchase a house/unit. When you take that amount, legal fees, agents fees, any monies owing on home, what’s left isn’t always a huge amount to live the rest of your days on. Seeing as I’m definitely not planning on going off anytime soon, that may be awhile.
 
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I believe immigration should be limited to only those with skills we desperately need, e.g. those with either building construction skills, trades such as plumbing, electrical etc.
People who can be employed as soon as they arrive.
And then we have our own youth, many who seem to think that welfare is a lifestyle. Sit around doing nothing but drugs , crime, etc and contributing nothing to society, just taking. In a lot of situations this is a generational problem. A case of monkey see, monkey do.
IMO when you leave school you should either have a job, go to TAFE or take up an apprenticeship.
Anyone who hasn't done this within 6 months should automatically be required to join one of the forces for the minimum enlistment time of three years. No ifs or buts, no dole.

We encourage a welfare society in this country where people who contribute nothing get handouts left, right and centre
On the other hand aged pensioners most of whom, on the whole, have worked hard all their lives, paid their taxes, etc and are expected to live on an amount below the poverty line and being told that the government can't afford to pay more while handing money out to themselves and bludgers.
I speak from experience unfortunately, as my son who is drug addicted and now 53 has contributed very little, but taken much. He just automatically gets paid. Doesn't even have to try looking for a job.
Three step daughters all on their 50s now, all were on single mums pension by the time they were 16.
Still on welfare, Jobseeker. That's a joke, I don't think any of them look for work, but somehow still get paid.
Now their daughters are carrying on the family tradition.
There is something seriously wrong with the system in this country.
 
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I believe immigration should be limited to only those with skills we desperately need, e.g. those with either building construction skills, trades such as plumbing, electrical etc.
People who can be employed as soon as they arrive.
And then we have our own youth, many who seem to think that welfare is a lifestyle. Sit around doing nothing but drugs , crime, etc and contributing nothing to society, just taking. In a lot of situations this is a generational problem. A case of monkey see, monkey do.
IMO when you leave school you should either have a job, go to TAFE or take up an apprenticeship.
Anyone who hasn't done this within 6 months should automatically be required to join one of the forces for the minimum enlistment time of three years. No ifs or buts, no dole.

We encourage a welfare society in this country where people who contribute nothing get handouts left, right and centre
On the other hand aged pensioners most of whom, on the whole, have worked hard all their lives, paid their taxes, etc and are expected to live on an amount below the poverty line and being told that the government can't afford to pay more while handing money out to themselves and bludgers.
I speak from experience unfortunately, as my son who is drug addicted and now 53 has contributed very little, but taken much. He just automatically gets paid. Doesn't even have to try looking for a job.
Three step daughters all on their 50s now, all were on single mums pension by the time they were 16.
Still on welfare, Jobseeker. That's a joke, I don't think any of them look for work, but somehow still get paid.
Now their daughters are carrying on the family tradition.
There is something seriously wrong with the system in this country.
National Service is a good idea and would teach some teens how to behave etc but some guys are very sensitive and fighting is just not in their nature. My stepbrother 18 shot his- self during his compulsory call up . Yet my grandson joined the army for 3 years and what he told about the training was barbaric. Sleep deprivation , extreme heat condition to mention some they had to endure but he completed the three years but he said some left.
 
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I’ve said it before, but have no hope of it ever happening - stop charging pensioners sales tax on the down-sized home purchases if the “new” place is going to be their full time residence. If it’s for investment properties, sure go ahead and charge the sales tax. I’d love to sell my ridiculously large home, that’s literally falling down around my ears, but every time I do the math the sales tax puts a damper on the project because of all the other fees and the fact that I only have my aged pension to live on. Those several thousands of dollars staying in my account would help my living costs immeasurably.
Ah, wishful thinking again in my old age!!
 
National Service is a good idea and would teach some teens how to do some guys are very sensitive and fighting is just not in their nature. My stepbrother 18 shot his- self during his compulsory call up . Yet my grandson joined the army for 3 years and what he told about the training was barbaric. Sleep deprivation , extreme heat condition to mention some they had to endure but he completed the three years but he said some left.
Well you can't just leave, unless on medical grounds. I worked for the army, as a civilian, secretary to the Colonel at the RAASC Centre, Puckapunyal, during the VietnamWar.
Yes the basic training is hard going, but they were being trained for the Vietnam War (a war we should never have been involved in). Heat, sleep deprivation, etc is nothing compared to what they would have to endure over there.
They were being trained to the best of their ability to give them the skills to survive and hopefully come home.
Nowadays they would still have to do the same training. After all, you are in the armed forces, you need to know how to defend yourself. Survive if you should become a prisoner, etc.
The armed services is not a cushy ride.
Maybe it would make some of this entitled generation get up off their backsides and get a job, or they would be in for a very rude shock.
Even in the Vietnam War era, many young smart arses, who would sit in my office awaiting their charges to be heard didn't take long to pull their heads in and toe the line.
 

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