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The Treasurer argued such changes would push up rents if investors pulled out of the market, and could lead to an economic decline if property prices fell sharply. He also argued that it is mainly small-scale investors on moderate incomes that utilise the negative gearing tax deductions. However, Mr Eslake said that was a major inconsistency in the Treasurer's arguments in favour of retaining negative gearing unchanged. "There's a certain irony in the Treasurer on the one hand saying negative gearing navigate to this site Oral Surgeon mortgage is OK because lots of nurses, teachers and police do it, but in the very same speech bemoaning the fact that nurses and teachers in particular are unable to buy houses in the communities which they serve," he said. ABC News: Angela Ross Saul Eslake says the first step to boosting home ownership rates is to end tax laws favouring investors. Increase in housing supply also needed Mr Eslake said limiting negative gearing and/or reducing the capital gains tax discount is key to improving housing affordability. "I believe they are an essential part of making housing more affordable for people who don't already own at least one property," he said. "They're not a magic bullet, they need to be accompanied by other measures which will boost supply." While critical of the Treasurer's continued refusal to consider curtailing negative gearing, Mr Eslake acknowledged some positives out of his speech. "Some of the things Mr Morrison is proposing in relation, for example, to the bond aggregator based on the UK model of facilitating the raising of debt by not-for-profit housing providers in order to provide more affordable rental housing is an important measure to boost supply," he opined. Mr Eslake added that state and local government planning changes to encourage development, and various proposals to encourage older people to downsize to free-up the supply of family-sized houses, would also increase the supply of housing and put downward doctor home loans Oak Laurel pressure on property prices.