Housing debate to heat up on way to budget

The housing debate can only get more heated in the run-up to the budget with a clear divide between the two major parties.

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The debate surrounding housing affordability will only get more heated in the run-up to the budget. (AAP)

The political debate surrounding housing affordability will only get more heated in the run-up to the May 9 budget, but it remains to be seen whether it is going to leave potential home buyers with a warm afterglow.

Treasurer Scott Morrison has made tackling housing affordability the centrepiece of his second budget.

Reserve Bank governor Philip Lowe this week raised concerns about ballooning housing debt at a time of slow household income growth, interest-only mortgages and housing tax concessions.

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However, Prime Minister Malcolm Turnbull has been vague on the government's intentions surrounding the capital gains tax discount, and whether young home-buyers should be allowed to tap their superannuation for a housing deposit.

Labor believes opening up super for housing is a "hair brained" idea, while sticking to its argument of limiting negative gearing and reducing the capital gains tax discount.


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Published 6 April 2017 at 5:02pm
Source: AAP