Accommodation supplement is fuel on the housing fire
The other big handout in this budget is the accommodation supplement, with Steven Joyce announcing he will throw over a
billion dollars in taxpayer money every year at the already overheated housing market.
It’s a perfect example of Politicians creating problems through bad policy, assuming the role of hero to fix things, and
then making them worse.
Although this will temporarily ease the pain for some of the people currently locked out of home ownership, it
ultimately pumps up subsidies for renters. It will drive rents and house prices even higher.
The only true solution to the housing crisis is scrapping crazy regulations and planning laws. We have plenty of land for housing, it just
needs to be freed up so people can build.
ENDS