As Australians head to the ballot box prepared to cast votes on the issue of housing affordability, new data from Cotality shows that house prices trended higher in April and over the year. Analysts expect home values to continue rising in the months ahead as interest rates fall and the supply of new homes remain under pressure. The lack of affordable housing is major issue for many voters. But the debate about how to constrain house prices remains a sore point because millions of Australians are home owners and many have built their wealth through property. This election, the only mainstream party calling for reductions in housing tax breaks is the Greens. It wants to scrap negative gearing and the capital gains tax discount (CGT) on investment properties, with the exception of one property for existing owners. These tax concessions cost the federal budget tens of billions of dollars each year. Even those who stand to gain from these tax generous breaks, worry that without changes, future generations won't be able to afford to buy a home. But given the number of homeowners vastly outnumber first home buyers, the major parties have done the math, and decided that a better sell with the electorate is that house prices should keep rising. #ABCBusiness
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