The parliamentary inquiry into housing affordability and supply in Australia

How to make housing more affordable Submission to the parliamentary inquiry into housing affordability and supply in Australia Brendan Coates and Tom Crowley How to make housing more affordable Summary We welcome the opportunity to make a submission to the House of Given the allocation of federal responsibilities, the most direct way Representatives Standing Committee on Tax and Revenue on the the. [...] The best available estimates of the ‘price elasticity of supply’ in Australia is that Chile a 10 per cent increase in dwelling prices leads to an increase in the stock of new housing of between 3 and 5 per cent. [...] The voting bases of councils, the basis on which they collect rates, and the blurring of responsibilities between the In recent years, planning controls have been significantly relaxed Commonwealth and the states all reduce the political incentives for any for high-rise in Brisbane and for medium-high density dwellings in level of government to do better. [...] While the policy merits of taxing housing markets collapse.44 owner-occupied housing are sound, the politics is likely to be particularly intractable.47 Including more of the value of the family home in the pension assets test would also marginally reduce housing demand. [...] But it would be difficult mortgage costs, and the (non) taxation of capital gains and imputed to resist calls to allow deduction of interest payments and the cost of any capital improvements made to the home such as renovations, which could wipe out most or all of the benefit to the budget.