Do people actually want affordable housing? | Between the Lines
The Wrap with Matt Grudnoff
The reaction to the slowdown in house prices in some parts of Australia makes me wonder, do people actually want affordable housing?
Some in the media have lost their minds at the very idea that house prices might not continue increasing. But rapidly rising house prices are the opposite of affordable housing.
The tax changes in the budget are likely not the only thing that is weighing on house prices. There have also been three interest rate rises this year. But the budget changes, which got rid of negative gearing for investors buying existing housing and made the capital gains tax discount less generous, are likely to be an important part of the slowdown.
Of course, there are predictions that prices will fall further. They range from almost no drop to about 10%.
Is this going to cause economic ruin?
Photo: AAP Image/Dean Lewins
— Matt Grudnoff is Senior Economist at The Australia Institute
The Big Stories
New episode of What’s the Point? with Richard Denniss
What’s the Point? with Richard Denniss cuts through the spin to explain the political and economic decisions shaping the lives of everyday Australians.
On this episode, Richard discusses how the global gas industry has pulled off one of the greatest cons in Australia’s history. He spells out the simple steps we need to take to fix it.
✍️ Join the call for a national plebiscite to introduce a 25% gas export tax
House prices hit a blip and it’s all media panic. Please, let’s have some perspective
Of all the stupidity Australians have accepted as “normal”, our relationship with house prices may be among the most ridiculous.
This nation is in the grips of a media panic over a small blip in house prices. This blip apparently deserves wall-to-wall coverage and dire warnings of impending doom.
Maybe – shock – the current 0.4 per cent decrease in national house prices (not a typo, it is less than 1 per cent) COULD reach 8 per cent. MAYBE 10 PER CENT. Get the army ready – society itself may be about to collapse.
Labor soars, Coalition fumbles – and no one’s really looking at the big issues
Labor finished the last parliamentary week on a high. There is a feeling within caucus that the party has a plan for dealing with One Nation, helped along by the fact the Coalition is completely without one.
The Liberals’ switch to Angus Taylor has put a spring in the steps of Anthony Albanese and his office.
For a political animal like Albanese, Taylor’s leadership has been a gift.
After decades of hugely helping the rich, can the rest of us finally get ahead now?
The biggest and best tax reforms in 25 years just passed the Parliament.
Labor’s tax reforms are progressive, and the most talked about reforms are the ones that will affect housing. Finance journalist Alan Kohler neatly summarised Australia’s housing crisis this way: “It’s no longer possible for somebody who doesn’t have reasonably wealthy parents to buy a house. It’s as simple as that. And it’s a fundamental change to Australian society.”
That’s the problem Labor is targeting with these reforms.
Wilkie brands Albanese’s gambling legislation ‘useless’ as losses top $104bn since Murphy review
The Albanese government is facing fresh pressure over gambling reform after Australians lost more than $104 billion in the three years since being handed the Murphy review, while the Greens and the Coalition have forced its proposed legislation to a Senate inquiry.
Labor introduced its long-awaited legislation to Parliament on 2 July, with the Prime Minister promising his government would “take the strongest possible action that any government has taken in history”.
However, critics have argued the review’s flagship recommendations have largely been ignored, with Independent MP Andrew Wilkie describing the legislation as ‘useless’.
The NT receives more federal funding per capita than any other jurisdiction. Where is it going?
The NT gets more funding from the Federal Government per person than any other jurisdiction in Australia, mostly paid for by Goods and Services Tax (GST).
But, when it comes to transparency and accountability around how we spend your money, things aren’t so clear.
This money comes from everyone in Australia, but the Territory gets a bigger share of the pie because of its unique challenges – vast distances, high service delivery costs and deep, persistent disadvantage. The Federal Government recognises that Territorians need additional support and additional investment to achieve similar outcomes to the rest of the country.
However, while Territorians get extra money because of their distances and disadvantage, it is not at all clear that the government spends this money on actually addressing these problems.
Shorter America This Week: On China; SCOTUS Season; Book reviews
“Well, I’m back in chilly Melbourne after an excellent week in Berlin and Brussels.
“I had the luxury of mostly not talking about Trump for that whole time – at least for the people we met, the reality of what Trump is doing is clear and now not particularly worth remarking on, as Europe moves and changes (albeit in that slow, European way) in response.
“But – surprise! – Trump kept on being Trump for that whole time. Here’s what I missed, and what I’m catching up on,” writes Dr Emma Shortis, Director of the Australia Institute’s International & Security Affairs Program.
“Shorter America” is a series where Dr Emma Shortis loops you in on what’s going on in America and shares news and analysis that you can trust.
The Quote
“Housing affordability is a bullshit, made-up term that was invented to help politicians avoid answering hard questions.”
– On his new podcast What’s the Point?, Dr Richard Denniss unpacks the housing crisis and the government’s recent changes to investor tax breaks.
Podcasts
Australia’s gambling toll grows as government sidesteps total ad ban | Dollars & Sense
An outright ban on gambling advertising would be extremely popular – so why isn’t the government doing it, asks Matt Grudnoff.
Listen now:
Australian states aren’t going broke, but they are being ripped off | Follow the Money
Rod Campbell, Matt Grudnoff and Ebony Bennett discuss how States and territories are missing out on tens of billions in revenue each year because the GST isn’t growing as promised.
Listen now:
Sycophants and yes-men | After America
Allan Behm joins Dr Emma Shortis to discuss the demise of an Iran agreement that never really lived, the latest NATO summit, the death of Senator Lindsey Graham, and the evolution of the Australian government’s diplomacy in the Pacific Island region.
Listen now:
What’s On
Rich Kid, Poor Kid: The Battle for Public Education
Thursday 30 July | 5:30pm AEST | Fullers Bookshop, Hobart
For decades, Australia has invested heavily in private education while public schools face underfunding, overcrowded classrooms, and cuts to programs like music and STEM. Rising private school enrolment and the marketisation of education have also increased parental anxiety, deepened inequality, reduced community integration, and even contributed to traffic congestion from longer school commutes.
So how did we get here?
In conversation with Leanne Minshull, co-CEO of The Australia Institute, Jane Caro examines the policy decisions that led to this situation. Drawing on her experience, she outlines how Australia arrived at an education crisis, and what’s needed to build a stronger, fairer public school system.
A Brief History of Climate Folly with Tim Flannery
Friday 31 July | 11am AEST | Online
Join Tim Flannery in conversation with Emma Flannery as they discuss his new book A Brief History of Climate Folly.
From ancient weather rituals to Cold War schemes like nuking the Arctic ice, this entertaining history explores humanity’s long obsession with controlling the climate.
Can science do better in the Anthropocene – or are we repeating old mistakes?
Dr Hugh Saddler Memorial Lecture 2026
Monday 17 August | 6 – 7pm AEST | National Film and Sound Archive of Australia (NFSA)
Join us at the 2026 Dr Hugh Saddler Memorial Lecture, featuring former ACT Minister, Greens Leader, and long‑serving parliamentarian Shane Rattenbury.
This special evening will be a reflection on how the ACT turned climate ambition into action, and what its experience reveals about democracy, power, and people‑driven change.
Shane will discuss how power‑sharing, combined with a clear community mandate, made ambitious policy both possible and durable, and why the ACT should be seen as a case study in governing the transition from ambition to action.
Climate Integrity Summit 2026
Tuesday 15 September | 9am AEST | Parliament of New South Wales, Sydney
The age of fossil fuels is ending – what will the exit look like for Australia?
The Australia Institute’s 2026 Climate Integrity Summit will bring together global political leaders, economists, advocates, artists, and musicians for a day of big ideas and bold conversations.
It will examine Australia’s conflicting economic and climate policies and provide a space where we can discuss a more rational way forward together.
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