Australian housing market an economic risk

Less wealthy Australians have the most to lose if house prices collapse and cause an economic downturn, the shadow treasurer, Chris Bowen, has warned.

Bowen made the comments in a speech to the McKell Institute on Wednesday warning that rapid house price growth and record levels of mortgage debt were issues of financial stability, not just of fairness and equity.

Newspoll has found that a majority of voters support curbing negative gearing and reducing capital gains tax concessions for investors, but more people oppose using superannuation for a house deposit than support it.

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