Australia’s housing tax reset is already cooling mortgage demand

Westpac’s report of a 20% fall in mortgage applications and its forecast that investor housing credit growth will halve next year signals a fast-moving market response to the government’s decision to scrap tax breaks. This is both a policy win and a policy risk: removing investor incentives can ease upward pressure on prices, but a sharp retreat in credit and investment could also reduce supply, hit construction and unsettle regional economies that rely on property activity. An editorial would examine who gains and who loses from the change, whether the move enhances fairness for first‑home buyers, and what complementary measures are needed to protect credit access and housing supply as the market adjusts.