The Report on government services 2026: housing and homelessness (part G) shows Australia’s social housing stock is at record lows, coinciding with worsening social housing need and persistent homelessness. 

This briefing note recommends the Federal Government recalibrate its housing policies to prioritise people on the lowest incomes. It must set and fund social housing targets to end housing stress, curb the 50% Capital Gains Tax (CGT) discount and negative gearing, and invest the savings in essential supports such as social housing.

Key findings

• Social housing is at record lows and behind international standards.
• As social housing declines, housing stress has become more severe and persistent for people on low incomes.
• Government spends more on property investor tax breaks than social housing, homelessness services and rent assistance combined.

Key recommendations

• Set and invest to meet national social housing targets to increase social housing to at least 6% of homes over a decade and 10% of homes over two decades. 
• Curb the 50% CGT discount by halving it to 25% over five years. End negative gearing for new investments, and over five years for existing investments.