Labor's Multinational Tax Bill to Undercut Housing Targets

The Senate Economics Committee's further inquiry into Labor’s Multinational Tax Bill has revealed Labor will severely undercut their own housing targets.

🌐 Coalition Senators' Dissenting Report

Labor’s housing policy is a complete shambles. No wonder younger Australians feel their government has no answers to the housing crisis. When asked, the Treasury said they “haven’t done any modelling to analyse the impact” of the bill on housing supply: ‍

Senator Bragg: “ Given the importance of housing to this nation and how difficult it is for young Australians, particularly millennials and gen Zs, to get into a house, why wouldn't you and the government have commissioned modelling to look at the impact of this bill?_ ”

Mr Robinson: “ I think that goes to the difficulty in actually undertaking detailed sectoral analysis in terms of modelling those sorts of effects.”

Despite having to amend this bill because of a lack of consultation, Labor has failed to address concerns with their punitive debt deduction creation rules and poorly drafted thin capitalisation measures. The debt deduction creation rules are so poorly designed that they will increase taxes on domestic businesses and diminish business investment in Australia. Investment in much needed Australian housing will be diminished. By failing to properly consult with the market participants needed to build new houses, Labor has designed a bill which will result in fewer Australian houses. Labor’s legislative agenda for housing is thin. It features a few giveaways to unions and super funds. The build to rent measures now have a massive question mark over their financing thanks to the tax bill shambles.

If Labor is serious about increasing housing supply, they must fix this warped bill immediately. ‍

ENDS