In Australia, housing supply is emerging as a key issue, for yesterday's new Labor Government Budget.

It's raising taxes on investment properties and some trust funds - to give working Australians a $250 tax break.

35,000 fewer homes are expected to be built, despite net migration of 300,000 people a year.

New South Wales University Emeritus Professor, Peter Swan, says they're destroying the rental industry.

"All citizens are going to have to put up with much higher inflation - not due to the war, but due to excessive Government expenditure."  

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