Crossbench senators David Pocock and Jacqui Lambie have put forward suggestions to amend Australia’s negative gearing and capital gains tax (CGT) concessions, with potential savings estimated at up to $60 billion over the next decade. These suggestions, based on modelling from the Parliamentary Budget Office, propose options that include ending negative gearing, grandfathering the CGT discount for properties bought before July 2024, and limiting the discount to new properties thereafter. This move could save $9.9 billion over four years and $60 billion by 2033-34.

The proposed reforms are intended to balance protecting current investments while encouraging new housing supplies. Pocock and Lambie have called for the Labor government to consider these changes, which they believe could help address Australia’s housing crisis without hurting small investors.

In a related issue, Victoria has seen a significant increase in employed individuals seeking homelessness services, with a 14% rise in 2022-23, amounting to over 12,000 affected workers, 70% of whom are women. This situation has been exacerbated by a 15% increase in rental prices and is particularly pronounced in outer Melbourne areas like Casey and Wyndham. Citing family violence as the predominant cause of homelessness among this group, the Council to Homeless Persons has urged investing an additional $23.4 million into the Private Rental Assistance Program to aid those at risk of eviction and homelessness.

In broader political discourse, Senator Lambie has criticised the Prime Minister for lacking bold measures in addressing the housing crisis, describing the current efforts as insufficient. In other news from Victoria, the government has decided against opening a second safe injecting room in Melbourne’s CBD, a decision condemned by the Victorian Greens and other critics as neglecting the needs of people struggling with addiction.