We believe ring-fencing property investment tax losses lacks a sound
economic rationale. If policy-makers are serious about helping the
Reserve Bank contain inflationary and housing pressure, the solution
resides in looking at supply constraints, productivity, savings, and the
enforceability of the existing rules towards housing – all areas with the
potential to deliver better economic incentives. The introduction of
such assistance is distinct from ancillary policy instruments, which we
believe would deliver additional distortions.
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