I asked Chatgpt the following question;

Could you explain why existing houses that are sold in Australia are excluded from the Consumer Price Index calculations?
It just doesn't make sense to me considering "Inflation is commonly defined as the decline in the purchasing power of money" and a house be it new or second hand costs money.

Here's Chatgpt's response:
This is an excellent and important question — and one that economists, policymakers, and the public have debated for years.
Let’s break this down clearly:

Housing was a major talking point in the recent federal election, but talk is cheap

and the Albanese government have done little if anything to change the status quo. Simply put, there isn’t enough housing, and what’s available is ridiculously overpriced. What the Albanese government has offered is a chance for new home buyers to buy into a huge debt, not an affordable home! Although the government’s policies were more favourable than the Coalition’s (no surprise), they were pretty lame. For initiatives like the Help To Buy scheme for first-home buyers and the expanded Home Guarantee Scheme to succeed without driving up demand, they would need to be paired with a considerable reduction in tax incentives for investors.
References from: chief business correspondent Ian Verrender
https://www.abc.net.au/news/2025-05-13/why-soaring-property-prices-could-dampen-future-rate-cuts/105284238

Why Falling House Prices Might Be Exactly What Australia Needs

In Australia, talking openly about falling house prices is almost taboo — especially in a sector where homeownership is not just an aspiration, but a core pillar of wealth and economic stability. So when a leading property data provider suggests price drops could be good for the country, it’s worth paying attention.

Australia real inflation is hidden in housing. No political party has the will for positive enduring change as they and their economic model (wealth effect) are vested in the status quo.

The below are suggestion for discussion, all will have winners and losers depending on which side of the fence you are on (vested (have a home/investments in property) or unvested dream of affordable shelter and stability)

1) Remove capital gains tax concession on residential property.

Petition to the Government of Australia for a Binding Referendum on Negative Gearing and Capital Gains Tax Reform.
To the Honourable Members of the Australian Parliament,We, the undersigned citizens and residents of Australia, formally petition the government to hold a binding referendum on the issue of investment property negative gearing and capital gains tax (CGT) legislation.

The ABC News article by Alan Kohler, titled "Labor and the Coalition both dodging two things that matter most this election," highlights two critical issues in the upcoming Australian federal election: housing affordability and productivity growth. Kohler argues that both major political parties have failed to present substantial policies addressing these challenges, opting instead for short-term solutions. ABC

Click to listen
Australia's housing crisis hasn't always been with us. What choices created it, and what choices are now needed to fix it? Buying a house is now out of reach if you're on an average wage, and rental options are expensive and precarious. If we don't address the issues urgently, generations to come will face homelessness or profound poverty paying rents on a pension. There are solutions. Are politicians courageous enough to try them? Join Natasha Mitchell and guests at Adelaide Writers Week Speakers Maiy Azize Deputy Director of Anglicare Australia National spokesperson, Everybody's Home campaign Alan Kohler Finance journalist

Property Investors in Australia: Philanthropists or Profit-Seekers?

The Australian property market has long been a battleground for debate, with investors playing a crucial role in shaping housing availability and affordability. Some property investors view themselves as contributors to society, providing much-needed rental accommodation in a country grappling with housing shortages. Others argue that their primary motivation is profit, driving up prices and making homeownership increasingly unattainable for everyday Australians. The question remains: are property investors in Australia benevolent providers or simply capitalizing on a lucrative market?