he Real Estate Institute of Australia (REIA) has called on the Federal Labor party to announce what they plan to do about existing negative gearing and capital gains taxation arrangements if elected.
The call comes following a recent announcement by the Leader of the Opposition, Bill Shorten, that there would be no decisions until after the Federal Election.
REIA President Adrian Kelly said all Australians deserved to know what the Federal Labor Government planned to do if elected and questioned whether they were keeping quiet in an attempt to mitigate voter backlash in the lead up to the election.
“It is not acceptable to appear to be ‘having a couple of bob each way’ in the lead up to the election. There is already enough market uncertainty particularly in the larger states and a “nothing to see here” approach will only exacerbate this uncertainty.
“The ALP needs to come clean with what its election policies actually are so that all Australians – including the nearly 100,000 real estate businesses across Australia together with their employees and families – know exactly what they will be voting for and can make an informed decision at the ballot box,” Mr Kelly said.
Based upon previously announced taxation policies from the Federal Labor party, REIA have highlighted which Australians will be most affected by these changes.
According to REIA, the big ‘losers’ would be:
- ‘Mum and dad’ investors who want to buy an existing investment property to supplement their retirement savings will no longer be able to claim a modest taxation deduction.
- Home owners who will see additional downward pressure on home prices in an already falling national market.
- Tenants who will see their rents rise just as they did under the Hawke/Keating experiment in the 1980s.
- Builders and their ‘tradies’who will build less houses as shown by independent research undertaken for the Master Builders Association last year.
- State Governments and their constituents who will receive less transfer duty revenue to spend on much needed infrastructure.
“REIA welcomes the promise to consult but let’s do that now, not after the election, and let’s look at all property taxes in a holistic approach and not just negative gearing and capital gains tax as if that’s the panacea to housing affordability,” Mr Kelly said.
Find out more about negative gearing and why it’s positive for West Australians.