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Promoting the supply of low income rental housing

Abstract There is disturbing evidence of a contraction in the stock of low income private rental housing. In this paper we offer evidence indicating that federal government tax preferences, economies of scope and higher operating costs are part of the explanation for this contraction. The Australian Bureau of Statistics Rental Investors’ Survey is used to gauge whether low income housing tax credits and tax‐free capital gains thresholds can be used to promote the supply of low income rental housing.