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Labor’s potentially market-changing negative gearing plans lack substantial amounts of key information, a new Newspoll survey has found.
The results of the survey showed that 32 per cent of Australians believe that the negative gearing policy will see property prices fall significantly, and 42 per cent believe that prices will fall “a little”.
Further, 36 per cent of Australians believe that renting will become more expensive and only 33 per cent believe that housing will become more affordable for first home buyers.
The results also showed that the majority of Australians are in favour of reducing tax breaks for investors, at 47 per cent. While a high figure, this number has fallen from 54 per cent back in April 2017.
Ken Morrison, CEO of the Property Council of Australia, said that the proposed policy could impact on property markets and the financial wellbeing of millions of Australians, with 71 per cent of Australian investors owning one investment property and 19 per cent owning two.
“Property investors are not rich ‘property barons’. The overwhelming majority of property investors are everyday Australians on modest incomes,” Mr Morrison said.
“Property investors play an essential role in providing housing choice for Australians, and the opposition’s planned changes to negative gearing and capital gains tax raise several questions for which there are currently few satisfactory answers.
“What is the forecast medium- to long-term impact of these changes on property investors? With housing prices already falling and construction levels slowing, what are the consequences of making such a fundamental policy change at this stage of the cycle?”
Past investors, Mr Morrison said that this also raised questions for renters, which he claimed make up one-third of Australian households.
“These households rely on a property investor to provide their home. What happens if there are fewer investors in property and less supply for the rental market?” the CEO asked.
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