Australia cannot improve living standards without addressing housing affordability, say unions.

Working Australians are increasingly being locked out of owning their own homes, and rents are skyrocketing in cities and regions, in a hit to national living standards, the ACTU told the recent Economic Reform Roundtable.

The ACTU advocated for major tax reforms to tackle the national housing affordability crisis in addition to increasing housing supply.

Unions argued that negative gearing housing tax breaks and capital gains tax discounts should be restricted to a single investment property, instead of favouring those with multiple properties.

“We cannot continue down the same path of giving investors tax supports while owning your own home gets further out of reach for average workers and becomes nearly unimaginable for young people,” said ACTU Secretary Sally McManus.

Unions also support getting behind modular housing, which can be quicker and cheaper than using conventional building materials, backed by a faster development approvals process for new housing and green energy projects.

Australia’s super funds can and should do more to contribute to building more homes they say.

A concerted clamp down on tax avoidance by large companies and high-net-worth individuals should also form part of a tax reform package, the ACTU said.