In another sign that the Government intends placing a heavy election campaign focus on the Australian Labor Party’s (ALP’s) policies changing negative gearing and increasing capital gains tax, Treasurer Josh Frydenberg has sought to leverage the views of a Government-convened roundtable of housing industry identities.
The roundtable included representatives from the Property Council, Master Builders Australia, the Real Estate Institute and Wizard Home Loans with Frydenberg claiming the clear message from the industry was that Labor’s plan to abolish negative gearing as it currently exists and increase capital gains by 50 per cent would have a significant detrimental impact on the housing market and the broader economy.
“This is a lose-lose policy,” he said. “If you own your own home it will be worth less, and if you rent your home it will cost more.”
The Treasurer claimed that with Australia’s housing market cooling, now represented the worst possible time for such changes.