Crossbench senators David Pocock and Jacqui Lambie have put forth significant proposals for reforming property tax concessions, aiming to address the housing crisis and save up to $60 billion over the next ten years. The Parliamentary Budget Office (PBO) has provided modeling for five reform options, with the most ambitious one potentially yielding savings of $99 billion in just four years.
Pocock and Lambie argue that these reforms could safeguard existing investments while incentivizing new supply in the property market, offering a sensible way forward to tackle the challenges faced in the housing sector. Their proposals have gained support from the Greens and some opposition members who see potential benefits in reducing property prices.
In response to the housing crisis, the Coalition is also considering expanding super housing policies, which would allow first home buyers to withdraw from their super funds and existing homeowners to utilize super payments for mortgage offset accounts. These proposed changes signal a broader conversation around addressing housing affordability and promoting a more sustainable property market for all Australians.