Negative gearing will remain: Brendan O'Connor
Federal Housing and Homelessness Minister Brendan O'Connor has ruled out changes to negative gearing for property owners.
O'Connor said more needed to be done fast to promote housing affordability, speaking on Friday after meeting with state counterparts at a COAG meeting on housing and homelessness.
He said removing tax incentives for investors was not an option.
"Some people say [negative gearing has] attracted capital to the housing sector, which has increased housing stock," O'Connor said.
"Others talk about the lack of capacity for people to enter the housing market.
"But we've ruled out reviewing negative gearing (because) we believe it has been effective in some ways."
O'Connor said there were now better opportunities for owner-occupiers to enter the market with lower interest rates, low inflation and cooling house prices.
But it did not detract from the need to build more affordable housing for those on lower incomes.
"Eighteen per cent of people who use homeless services are under the age of 10," he said.
"We have too many women and children sleeping in cars."
Releasing more land was key to the supply of affordable housing, a states' responsibility, he said.
