Making Housing Affordable
The proposal to provide a tax deduction on first-home purchases isn’t bad, although Peter Costello thinks so. The problem with the Treasurer’s objection, however, is its short-sightedness. He claims that sales would be subject to capital gains as a result, but that isn’t necessarily so, since it’s entirely reasonable to impose a turnover time limit, whereby only sales occurring within the precluded period would be subject to taxation, and, like the tax deduction itself, apply the rule only to the primary residence.

I think there’s a lot more involved than tax deductions, but I wouldn’t be so quick to dismiss the idea.