Back to today’s briefing

Story perspectives

Study Links Tax Policies to Australia’s Housing Crisis

3/31/2026

36 4 Full Breakdown

Summary

Story summary

A new analysis by economist Nick Garvin of the e61 Institute finds that capital gains tax discounts and negative gearing rules have fueled property speculation in Australia, contributing to the housing affordability crisis.
The study shows these tax settings incentivize landlords to borrow heavily, inflating house prices.
Proposed changes aim to reduce the capital gains discount for investors to address these issues.

1 of 1

Story summary

A new analysis by economist Nick Garvin of the e61 Institute finds that capital gains tax discounts and negative gearing rules have fueled property speculation in Australia, contributing to the housing affordability crisis.
The study shows these tax settings incentivize landlords to borrow heavily, inflating house prices.
Proposed changes aim to reduce the capital gains discount for investors to address these issues.