The Real Problem Behind the Budget and the Solutions No One’s Talking About

Another Federal Budget, another round of promises. But once again, the people left behind are property investors and everyday Australians trying to build a better future.

Let’s start with the much-talked-about Help to Buy Scheme. On paper, it sounds generous. A 2% deposit, with the government contributing up to 40%. But in reality, it will help around 1,000 people at most. That’s it.

These buyers will be taking on high-priced mortgages, paid off with after-tax income, all while covering rates, water, power, insurance, and the costs of setting up a new home. It’s not the silver bullet it’s being sold as.

A smarter option? Live in the property for the required 12 months, then rent it out. That way, you can access the tax benefits and make the numbers work. I explain this in detail in my book.

But let’s get to the real issue that no one in Canberra seems to want to touch — APRA.

APRA Has Killed Investor Lending

Every year, we’re losing 40,000 landlords from the market because of:

• The banning of interest-only loans (a world first)
• The end of low-doc lending
• The removal of asset-based lending — which was safe and standard for 50 years

Now, even asset-rich retirees are being denied finance because they don’t earn a wage. Meanwhile, APRA is forcing banks to assess borrowers at interest rates 3% higher than what they’ll actually pay. It’s absurd.

If the government wants the private sector to return to building 200,000 dwellings a year, then they need to stop tying our hands.

My Solution

• Sack the top 10% of APRA and Treasury — they’ve been asleep at the wheel for years.
• Reinstate full depreciation on all properties, not just new ones. Limiting this was one of the worst decisions of the 2017 Budget.
• Back the tradies. Let them upgrade older homes, add bedrooms, ensuites, new kitchens. These are affordable and effective housing solutions. -____ Fast-track council approvals__. In the 1960s, approvals could be turned around in 7 days. Let’s bring that back.

Housing Supply Plan Lacks Punch

The target of 1.2 million homes over five years sounds good, but where is the detail? Where is the funding? Where is the reform to fix the broken lending system that’s stopping investors from acting?

Foreign Investment Crackdown – or Just a Cosmetic Fix?

The temporary ban on foreign investors buying existing homes looks like action, but it’s not going to solve our housing problems. A better solution would be to introduce 50-year leaseholds, with properties returning to state ownership at the end of the lease. That creates a lasting revenue stream for the public and makes land work harder for the country.

Tax Concessions Are Not a Cost

The Budget claims negative gearing and CGT discounts will cost $49 billion by 2025. That’s not a cost — that’s a saving. Without these policies, governments would be forced to build hundreds of thousands of homes themselves.

Investors provide housing. They take on risk. They pay tax. They reduce pressure on public housing. We should be thanking them, not framing them as a drain.

Final Thoughts

We don’t need more red tape or more slogans. We need common sense. We need a return to the basics that allowed Australia to grow and prosper — confident investors, sensible lending, and a government that works with us, not against us.

Until we fix the finance system and back the people willing to put their money on the line, no housing plan will succeed.