The federal Labor government’s budget on May 12 outlined some small housing tax changes.

But will it alleviate the homelessness crisis, reduce the national waiting list for public housing, cap astronomical rents and give the 750,000 people living in housing stress genuine relief?

No, it won’t. It trimmed back a fraction of the negative gearing and capital gains tax concessions, which costs a staggering $20 billion a year to the public purse. But Treasurer Jim Chalmers described it as the “largest and most comprehensive housing plan Australia has seen in generations”.

Labor argues it will make inroads into intergenerational wealth inequality and help young people jump on to the property ladder. However, the details show the investor class will not take much of a hit.

Negative gearing concessions allow landlords to claim significant costs of their residential investment against tax due on their other income — a public subsidy for expanding their property portfolios.

Liberal Prime Minister John Howard introduced the 50% capital gains tax discount in 1999. It allows owners to pay only half the capital gains tax when selling investment properties they have held for at least 12 months.

With encouragement from these tax perks for the rich, median national house prices over the past 26 years........

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