Another day, another call for infrastructure spending to arrest the housing bubble

Australian Greens’ Treasury spokesperson, Peter Whish-Wilson, commented today on the publication of the OECD’s Economic Outlook.

Senator Whish-Wilson said, “The OECD has, once again, clearly made the case for the government to borrow to fund productive infrastructure, and pointed out that doing so will improve productivity and be a bulwark against further escalation in the housing market.

“The Turnbull government must have shoved peas in their ears. The call from economist of all stripes is loud and clear. Investing in infrastructure is good for jobs, for the economy and good for Australia’s future.

“Australia needs a national building program that will give investors an alternative to the already over-inflated housing market. The failure to act on infrastructure will only increase the risk to the entire economy if and when there is a correction in the property market.

“In this context, the OCED is also calling for tax reform. Again, the government is deaf to the call. The rort of negative gearing and the capital gains tax concessions is the bogey in the Australian economy.

Reform on this front would make the housing market fair and would save the government in the order of $15 billion over the forwards estimates.
Australian Greens’ Treasury spokesperson, Peter Whish-Wilson