A proposal by Australia's opposition party to cut generous tax breaks for retail property investors won't make housing cheaper, experts have warned.
Australia's pricey property market was the topic of much debate this month after the Labor Party's Bill Shorten proposed structural reforms to make housing more affordable. But many experts caution that Shorten's proposal would not have much impact on reducing Australia's sky-high property prices.
Speaking at the New South Wales Labor State Conference, Shorten proposed to make negative gearing available only on newly constructed homes. He also said the subsidy on capital gains tax (CGT) should be reduced from 50 percent to 25 percent.
"It has become a national sport in Australia for the very wealthy to turn their income into capital," Shorten said.