Changing the tax policy on rental income on its own cannot resolve the shortage of supply
If tax policies are to be changed, it might be more effective to look at ways either to accelerate construction or reduce construction costs rather than ways to dampen down the after-tax returns on completed units. File picture: Dan Linehan
The latest development in the housing crisis is the threat to apply the tax rules so as to dissuade larger institutional investors from buying into the residential property market at the expense of owner-occupiers.
It’s a strategy that has already applied to smaller landlords in the private sector for many years.
