CGT discount report misses the housing supply crisis

17 March 2026

The Select Committee Report on the Capital Gains discount presented today has neglected the aim for a radical increase in housing supply as part of the National Housing Accord.

Master Builders Australia CEO Denita Wawn says the short- and long-term ramifications of the proposals put forward must be understood and holistically considered.

“Housing policy needs to be addressed holistically if we are to materially increase housing supply. Take the rental market as an example. 87 per cent of the rental market is provided for by private investors. Changes to the CGT discount or negative gearing on their own would impact both new housing supply and flow onto the rental market. While such changes may change the ownership, they won’t increase supply. As the incentive to invest is reduced, we expect new supply to also decrease.

“As captured in the National Housing Accord and mentioned in the report’s additional comments, we know that there is a shared goal to increase the housing supply by 1.2 million homes over 5 years. Builders are committed to this target however can’t afford to be held back by governments pulling the wrong policy levers.

“We need to ensure that any policy changes that affect housing result in a net increase, to improve affordability not only for builders and aspiring home owners but for renters as well,” said Ms Wawn.

Media contact: Dylan Hafey, Media Advisor

0497 330 064 | dylan.hafey@masterbuilders.com.au