Is fair going to end up being over taxing those who do the flips so it's not worth it and takes away a career they have built for themselves? The budget states that flipping will "be subject to full taxation on their profits as business income."
Does Property Flipping really lead to higher house prices in an area? Not necessarily. When there is a home in a neighbourhood that is excessively overpriced it usually will only sell for what the market value of that area is. Most experienced home flippers will renovate a house to match what the rest of the neighbourhood house prices are selling for or a bit higher. If they prices it excessively then they wouldn't get back the materials and hours they put into it, essentially losing money.
On top of all that, many people want to move into a home that doesn't need work. The general population is not interested in the excessive amount of work it takes to flip a very outdated or damaged house, no tot mention the price of materials these days.
On the other side of things, with house prices as they are for some, the only option is an outdated or damaged home, it's all they can afford. But even those houses are going for a higher price, with investors offering more than the house is worth, and more than many can afford.
So is house flipping really a part of the issue for raised house prices? Probably not.
Information from The 2022 Federal Budget