New research counters Labor’s negative gearing claims

New research commissioned by building and construction industry group, Master Builders Australia (MBA) has claimed the Federal Opposition’s policies on negative gearing and capital gains tax (CGT) will not increase the supply of new housing or create jobs.

The research, undertaken by Cadence Economics, found that if Labor’s policies were implemented there would be up to 42,000 fewer new dwellings being built across the country and up to 32,000 fewer full-time jobs.

It said this translated in up to $11.8 billion less building and up to $210 million in less renovation building activity.

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Commenting on the research, MBA chief executive, Denita Wawn said it suggested Labor’s own policies on negative gearing and CGT failed the party’s own test.

“Master Builders calls on the ALP to rethink their policies in the light of this new research and a changed housing market. Australia cannot afford for housing supply, building activity and employment to go backwards,” she said. 

“Cadence Economics was commissioned by MBA to test Labor’s claims that its policy to restrict negative gearing to investments in new housing and halve the capital gains tax (CGT) discount to 25 per cent on all properties will increase the supply of new housing and employment in the building industry,” Wawn said. 

She said the results of the modelling were that within five years of Labor’s property tax policy being implemented the construction of new housing would fall in all states and territories and employment would fall over the same period.

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Well, well well. Labor hurting their own voters via ill thought through rhetoric.

Another research group failed their brief. Apparently, the grandfathering of existing neg, geared properties not accounted for, makes you wonder why they thought they could get away with it.

lol. as if

lol. as if

Labor has always been financially incompetent, with badly considered fiscal policy and mismanaging the economy until the public can't stand it and bring the Libs to restore order, until they forget and succumb to Labor's lies yet again...

Labor equals fiscal armageddon. Let's consider the cumulative effect of their proposed measures: negative gearing abolished at the same time interest rates are tipped to rise and lending is drastically restricted by banks - double effect of increased unemployment and foreclosed house loans with lower entrant numbers to the market, brilliant fiscal policy. Franking credits abolished when interest rates potentially rising meaning less attraction to retain or buy shares, meaning less stimulus to an already bleeding economy, increasing unemployment yet further and increasing the gov liability with greater reliance on centrelink pensions or else higher numbers of impoverished pensioners earlier after chewingthrough their savings at a quicker rate - again utter genius policy stances.

Communism and socialism have proven they are erroneous and flawed systems, and yet this Labor government are intent on their sheer bloody minded adherence to their dogma, ignorance and irregard for the consequences to the Australian public and greed fuelled by their union cronies and ISA cashcows

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