The Housing Industry Association (HIA) has urged governments to focus on boosting housing supply instead of altering investor tax policies.

This follows a new report from the McKell Institute suggesting changes to property tax settings, including negative gearing. But HIA Chief Economist Tim Reardon argues that tax tweaks miss the point.

“Australia has 27 million people and just 11 million homes,” he says. “The fundamental issue isn’t investor activity — it’s that we’re simply not building enough dwellings to meet growing demand.”

Reardon emphasises that roughly half of property investors are now either neutrally or positively geared, according to FY2023 data from the ATO. Rather than discourage investment, he says the focus should be on reducing taxes, slashing red tape, and enabling faster approvals across all levels of government. “Decades of cumulative taxes, fees, and planning barriers have left Australia with an acute housing shortfall. The solution lies in creating more homes — not punishing those who provide them,” Reardon adds.