Lack of Logic
Is this a perfect storm or simply a lack of foresight by those in charge?
We presently have a dire shortage of housing to accommodate the demand at a time when, according to the Australian Securities and Investment Commission (ASIC), 1753 building companies across Australia have gone broke this financial year.
So it makes perfect sense, at a state level, to add an additional tax impost to those who invest in real estate and provide rental accommodation?
It is being widely reported that investors are looking to leave the market in droves, adding further pressure to the supply of available housing.
Add to this the spiraling costs and supply line interruptions that have been experienced over recent years together with a push, in certain circles, to put a cap on rents (a further disincentive to invest) and we clearly have a problem.
Why would the state government 'bite off the hands' that feed it? The recent announcement that the Federal Government will allocate an immediate $2B to assist the housing crisis is great, but this too will take time to filter down and become meaningful on a grander scale.
Surely a more collaborative approach with the property industry is warranted here in order to find a longer term solution rather than a somewhat scattergun approach that is likely to have a dire effect. Increased taxing and penalising those who provide the means for people looking to find rental accommodation is not the answer, surely.