A move to tighten the screws on foreign investors goes nowhere to improving housing affordability for Australians, Labor has told parliament.
The lower house on Thursday passed draft laws to force foreigners to pay more capital gains tax when they sell properties worth $750,000 or more.
The measure, announced in the May budget, increases the rate from 10 per cent to 12.5 per cent, while lowering the threshold from $2 million.
The Turnbull government has touted the proposal as part of a package to reduce the pressure on rapidly rising house prices and make home ownership more achievable for ordinary Australians.
But the federal opposition, while supporting the changes, said it had nothing to do with housing affordability.
"And so to say it is, is a scam, a sham and it's clutching at straws," backbencher Julian Hill told MPs.
Labor has referred the bill to a Senate inquiry for review.
Shadow assistant treasurer Andrew Leigh said the measure just "tinkers around the edges" when it comes to the challenge of housing affordability.
Share
