Stop blaming investors for the housing shortage

Australia's housing needs need to be addressed, but calls to scrap negative gearing will punish investors and could have deleterious consequences for the economy.

Persistent attacks against negative gearing, most recently by the Murray inquiry, the Grattan institute and so on are not only misguided but will likely prove harmful to society if adopted. Indeed, recent research from the RBA highlights why policymakers will likely have to increase incentives for investors if the country’s housing needs are to be met.

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