KEY POINTS
- Labor's "help-to-buy" scheme would support 40,000 buyers with an equity contribution of up to 40 per cent.
- But the Greens say tax breaks for property investors should be scaled back in exchange for its support.
- Labor needs the support of the Greens and at least two crossbenchers for legislation to clear the Senate.
A bid to end property hoarding and temper house prices could throw thousands of aspiring homeowner's dreams into peril as the government risks losing crucial support for its signature housing policy.
Labor's will support 40,000 eligible buyers with an equity contribution of up to 40 per cent for new homes, and 30 per cent for existing homes.
The government aims to have the scheme operating this year, but the Senate has referred the legislation to an inquiry which will report back in mid-April.
The Greens claim Help to Buy would push up house prices while failing to help renters and first-home buyers.
Greens housing spokesperson Max Chandler-Mather says Labor's housing policy needs major changes. Source: AAP / Mick Tsikas
The minor party wants property investor tax breaks significantly scaled back in exchange for its support for a plan it describes as Labor's "housing lottery".
The Greens are also urging for changes to negative gearing and capital gains, with the saved revenue to be set aside for public housing, while pushing for a rent freeze and a cap on rents as negotiations continue.
While no specific numbers have been provided to Labor as part of their ultimatum, the Greens have proposed limiting negative gearing rules to a single investment property.
Former Liberal NSW premier Dominic Perrottet has also called on governments to consider issues such as negative gearing.
"Over 90 per cent of all property investor purchases are on existing dwellings," Chandler-Mather said.
"That means they're not actually adding to supply. What they're doing is hoarding homes that could have been used by a first home buyer."
Treasurer Jim Chalmers ruled out changes to negative gearing and capital gains on Sunday.
Greens leader Adam Bandt said his party would push to end "tax handouts for big property investors".
"The system is stacked against renters and first home buyers, and Labor's answer is a housing lottery for a lucky few and higher rents and house prices for everyone else," he said.
Treasurer Jim Chalmers on Sunday ruled out changes to negative gearing and capital gains. Source: AAP / Mick Tsikas
The Opposition says it won't support changing the tax rules, with Nationals leader David Littleproud noting the importance of increasing supply.
Negative gearing allows investors to claim deductions on losses, while the capital gains tax discount halves the amount of excise paid by people who sell assets that have been owned for 12 months or more.
