Ryan Bridge: Jim Chalmers' Budget is hardly a recipe for affordable housing

Give them an inch and they'll take a mile. 

That's basically the message to anyone worried about a capital gains tax in New Zealand.

In Canberra last night Jim Chalmers' budget was pitched as a 're-balancing' of 'intergenerational inequality'.

Fewer young people own homes in Australia, so they've pit grandkids against grandparents and made tax changes to negative gearing and capital gains. 

Negative gearing is where landlords make a loss on their rental property - income (rents) are less than expenses. 

They can claim the difference as a tax deduction on other income. 

This, by the way, is something they said they wouldn't touch and now they have. Albanese and Chalmers ran an election campaign saying they wouldn't do this. 

In the same way their Kiwi Labour colleagues claim their capital gains tax will be limited in scope and scale.

But what does it achieve? 

The median cost of a Sydney house is AUD$1.7M. The country median is almost $1m.

That's more than Kiwi prices. Try buying a house in Melbourne - Godspeed. 

The reason these changes are not going to change the game for any young Australian, or young Kiwi flying the coop, is simple: supply.

As anyone with a townhouse in West Auckland right now well knows, the faster way to lower prices is to build more of the things. Supply and demand. 

And with these changes in Australia, fewer homes will be built, not more.

Master Builders Australia says the number of homes built in future as a direct result will go down.

In the Budget, Treasury, Chalmers' own Treasury, reckoned 35,000 fewer homes will be built over a decade.

Hardly a recipe for more affordable housing and 'intergenerational equality'.

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Episode Transcript

Speaker 1 (00:00):
Give them an inch and they'll take a mile. That
is basically the message to anyone worried about a capital
gains tax in New Zealand. In Canberra last night, Jim
Charmer's budget was pitched as a rebalancing of intergenerational inequality.
Fewer young people own homes in Australia, so they've picked
grandkids against grandparents and made tax changes to negative gearing

(00:20):
and capital gains. Negative gearing is where landlords make a
loss on their property your income your renters are less
than your expenses, and you claim the difference is a
tax deduction on other income it's a benefit. This, by
the way, is something they said that they wouldn't touch,
and now they have. Albanezian charmers ran an election campaign
say they wouldn't do this in the same way their

(00:42):
Kiwi labour colleagues claim their capital gains tax will be
limited in scope and scale. But what does it achieve.
The median cost of a Sydney house one point seven million,
the country median almost one million. That's more than Kiwi prices.
By the way, try by a house in Melbourne. Good luck, God,
speak to you reason and these changes are not going
to change the game for any young Australian or young

(01:03):
Kiwi flying the coup is simple. Supply as anyone with
a townhouse in West Auckland right now well knows the
fastest way to lower prices to build more of the things.
Supply and demand. It is basic. And these changes in Australia,
fewer homes will be built, not more Master bills Australias.

(01:24):
Is the number of homes built in future as a
direct result, will go down in the budget treasury. Charmer's
own treasury reckons thirty five thousand fewer homes will be
built over the next decade. And that is not a
recipe for rebalancing intergenerational inequality. If you ask me for more.

(01:45):
From Early edition with Ryan Bridge. Listen live to News
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