Between 2019-2023, 83.2% of investor finance went to the purchase of existing dwellings, analysis of ABS data by the Parliamentary Library shows. Meanwhile, only 10.5% of that finance went towards the construction of new dwellings. 

Considering both the construction of new dwellings and the purchase of newly erected dwellings account for a mere 17.8% of investor finance. 

This comes after Parliamentary Budget Office analysis shows tax breaks for property investors will cost the Australian budget just under $39 billion in forgone revenue this year alone, and over half a trillion dollars in the next decade. 

This research comes as the Federal Government has claimed any attempts to cap rent increases would discourage the supply of new housing.

The Greens have a policy to phase out negative gearing and capital gains tax concessions. The Greens policy is to:

• Immediately abolish the 50% capital gains discount for individuals for assets held for more than 12 months
• Phase out the deductibility for all investment property interest expenses against personal income for individuals (including negative gearing) with more than one investment property purchased before 1 July 2023 over a 5-year period

Quotes attributable to Max Chandler-Mather, Australian Greens spokesperson for housing and homelessness

“A tiny fraction of property investor spending goes towards building new homes, so the idea that capping rents will somehow affect the construction of new homes is nonsense.

“Far from supplying new housing, the vast majority of the time property investors are buying existing homes that could have been purchased by a renter as their first home, driving up the cost of housing and locking millions out of basic housing security. 

“So the reality is that the Federal Government will cough up $39 billion in tax concessions this year to incentivise property investors to outbid first home buyers on existing housing stock, drive up the cost of housing and force more people to rent long term. 

“Property investors will get $39 billion in tax concessions this year to make the housing crisis worse. Meanwhile renters get $4.9 billion in rent increases from those same investors and the Prime Minister is doing nothing to stop it. 

“The bottom line is if we want to tackle this housing crisis then we need to freeze and cap rent increases, phase out negative gearing and capital gains tax concessions, and invest the billions saved in a mass build of good quality public homes in the same way governments used to in the 20th century.