Analysis done by the Parliamentary Library using Core Logic and ABS data has shown that across Australia the annual income needed to purchase a house and not be in housing stress is $164,400 - 1.6 times the average income. Meanwhile for an apartment, an annual income of $130,599 is needed. Looking at the 8 capital cities combined, the income needed is $186,940 to purchase a house, and $133,837 for a unit.
The analysis assumes that a mortgage holder has a 20% deposit and is offered a standard variable rate mortgage of 6.49%, paying both principal and interest.
This means that for a single income household, there is no city region where purchasing a house is affordable (where they are paying less than 30% of their income in housing costs). For units, only Greater Perth and Greater Darwin would be considered affordable.
Earlier this week, Redbridge Polling commissioned by Everybody’s Home showed that 47% of voters were in housing stress (paying at least 30% of their income on housing). It further showed that 3 in 5 voters supported limiting or abolishing negative gearing and capital gains tax discount, with 1 in 5 voters unsure.
Quotes attributable to Max Chandler-Mather, Australian Greens spokesperson for housing and homelessness
“When you need to earn $186,000 a year and have a $173,000 deposit to buy a house in a capital city in Australia, then you know the system is broken.
“Just one Labor MP has a $42 million property portfolio, while millions of Australians give up on ever being able to buy a home because Labor refuses to scrap the massive tax handouts for property investors. It’s no wonder that support for scrapping these unfair tax handouts is so high.
“First home buyers are losing at auctions to property investors who keep pushing up the price of housing with their tax handouts from Anthony Albanese.
“The only way we are going to fix this crisis is if Labor finally works with the Greens to phase out the massive tax handouts for property investors, like negative gearing, that are denying millions of renters the chance to buy a home.
“Owning a home has become an impossible dream for millions of Australians, but not for Australia’s property investor Prime Minister and the 75% of Labor MPs who own an investment property.
“Labor should back the Greens plan to phase out negative gearing and the capital gains tax discount and invest that money in a public property developer that will build homes to be sold and rented at below market prices."
