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The Real Estate Institute of Australia has welcomed the federal opposition’s pledge to not shake up negative gearing if elected into power at the next election.
According to REIA president Adrian Kelly, now is a time that households and small businesses need certainty — which the statement from federal Opposition Leader Anthony Albanese has provided.
Mr Albanese told attendants at a Brisbane press conference that Labor, in government, would “maintain existing regimes for negative gearing and capital gains tax”.
According to Mr Kelly, the statement to stick with the status quo is all the more important with 12 million Australians currently in lockdown.
“Many mum and dad investors have borne the brunt of the rental eviction moratoriums and stepped up to provide social and affordable housing through this period,” Mr Kelly said.
With the majority of investors — more than seven in 10, according to ATO data — only owning one investment property, the REIA president said “continuing to support successful tax settings that encourage investment and have assisted investors throughout the COVID-19 pandemic is most welcome in a time of great uncertainty”.
The president has taken the time to thank the opposition “for taking on board the advice of the real estate industry as practitioners working at the coalface of property markets and welcome the commitment to keep negative gearing as it is, and not increase capital gains tax”.
For Master Builders Australia CEO Denita Wawn, the pledge is “good news for the building industry, the economy and the community”.
She said: “This announcement shows the opposition’s recognition that new home building and increasing home ownership is vital to economic recovery and people’s financial security.
“With a federal election looming, the opposition’s acknowledgment that restricting negative gearing and increasing capital gains tax would undermine housing supply, jobs and sabotage economic recovery is timely.”
Ms Wawn added that Master Builders had been in communication with the shadow minister for housing and homelessness, Jason Clare MP, since the last election.
The Housing Industry Association (HIA) has also applauded the change of plans, highlighting that it would “provide certainty for the housing industry and for Australians that are looking to invest or rent”.
HIA managing director Graham Wolfe expressed that private rental housing “plays a critical role in Australia’s housing supply continuum”.
“Without a reliable pool of residential investors across Australia, hundreds and thousands of households would find it harder to put a roof over their heads,” he continued.
The managing director said that the association is looking forward to working with all political parties in the lead-up to the next federal election, the date of which is yet to be set by Prime Minister Scott Morrison.
Yesterday, the Property Council of Australia had praised the changed stance, which the Labor Party had taken to two successive federal elections unsuccessfully.
Property Council CEO Ken Morrison said: “The opposition’s previous position on negative gearing and capital gains tax was always the wrong policy, at the wrong time, and voters at two elections knew it.”
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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