Another tax break for wealthier voters
The erratic flailing of the PM and Liberals is increasingly Kafkaesque. An inflation-matching pay rise for those on minimum rates is vociferously opposed as likely to cause a financial apocalypse.
Yet property owners are given a (further) tax break on top of capital gains tax-free status to sell and plough more into superannuation.
It is yet another tax break for the wealthier, without any attempt to ensure it adds to housing supply. And let’s not get started on the wisdom of shovelling superannuation into housing.
If we were to get serious about housing supply, one can only hope that eventually an elected government introduces a cap on investment housing breaks by capping and/or removing negative gearing and CGT.
Sean Littlebury, Brighton, Vic
Little advantage for younger couples
Just because you can get your boxing gloves earlier does not mean that you will win a boxing match. The ABS tells us that couples aged 25 to 34 have a combined super balance of $73,300. The Coalition’s new housing policy means that young couples will be able to use up to $29,320 of their super as a deposit.
Although this allows young couples to aspire to home ownership earlier, it clearly does nothing to achieve home ownership. With interest rates increasing to an expected 2.5 per cent within 18 months, and great uncertainty whether wages will increase, home ownership will remain a bridge too far for most young couples.
According to the ABS, as at January 2022…
