Labor's $32 billion hit on property owners is a risk for jobs, rents and the economy
The ability of average Australians to save for their future by investing in housing will be put at risk by proposed changes to negative gearing and capital gains tax, according to the Property Council of Australia.
The property industry is the nation’s largest – employing over one million Australians, creating 11 percent of economic growth and paying $72 billion in property taxes each year.
“This is a risky intervention in housing markets at a time when supply is meeting demand for the first time in a decade and prices are slowing”, said Ken Morrison, Chief Executive of the Property Council of Australia.
“It’s not a good time to be risking major changes to such a key part of Australia’s economy.
“The halving of the capital gains tax discount will be bad for new housing supply, even with their negative gearing changes.
“You can’t increase taxes on housing by $32 billion and not affect rents, housing construction or prices.
“The big risk is investors simply walking away from property – drying up supply at the time we need it most.
“It will also risk putting the property market on a roller coaster ride that will damage economic confidence.
“Two million Australians own an investment property and of those 1.2 million Australians who negative gear.
“840,000 Australians who negative gear earn less than $80,000 a year. Negative gearing is the way hundreds of thousands of average Australians secure their financial future.
“This includes 53,800 teachers, 52,000 retail workers, 35,900 nurses and midwives, 22,600 hospitality workers and 10,400 emergency services workers.
“This policy will put rents at risk, risk jobs and make it so much harder for families to plan their economic futures.