Tweaks to negative gearing, CGT won't solve housing crisis, says Domain, HIA
What happened
It’s been low interest rates, strong population growth and not enough homes being built,” Powell said. “Even with CGT changes, we’re talking about relatively small price movements of around 1-4 per cent. This matters for Professional Services & HR because fresh price movement and input-cost detail should reset bid assumptions, rate caps, and negotiation guardrails with 1-4, 220,000, 2018 as the clearest commercial anchors; expect rate card updates
Buyer takeaway
For Professional Services & HR, treat this as a cost-boundary signal rather than just a headline; buyer assumptions may need refreshing before the next quote or award decision
Cost / money
Use this to refresh should-cost views and challenge any fast repricing. Keep the read-through directional unless the source itself provides hard commercial numbers
Supplier / commercial
Suppliers with fresh cost justification may push harder on reopeners, indexation, shorter quote validity, or pass-through language. Buyers should separate real drivers from negotiation posture
Safety / operations
The operational risk is indirect: tight budgets or repricing battles often reappear later as reduced slack, substitutions, or execution compromises that buyers then have to manage
What to watch
Watch for shorter quote validity, reopeners, pass-through requests, or attempts to reset pricing on the back of weak evidence
Key facts
- It’s been low interest rates, strong population growth and not enough homes being built,” Pow
- “Even with CGT changes, we’re talking about relatively small price movements of around 1-4 pe
- Australia has gone from building around 220,000 new dwellings in 2018 to around 170,000 last
- Australia has only around 400 dwellings per 1,000 people, well below the OECD average of near