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Coinciding with a pledged boost for regional first home buyers from Labor, the Real Estate Institute of Australia (REIA) says it has now secured bi-partisan commitment to retain negative gearing.
On Friday, REB reported that the Labor Party would be introducing an additional 10,000 places for the First Home Loan Deposit scheme for regional dwellers.
The REIA welcomed that pledge - and also revealed it had secured Labor’s commitment to retain negative gearing, meaning both major parties now support the continuation of the investment property tax program.
President Hayden Groves said both the Government and the Opposition have now “promised to the Australian people and investors on the advice of REIA that negative gearing will continue to be supported”.
He hopes it provides investors with the confidence to continue investing in the pre-Election period.
“This is very difference from the elections in 2016 and 2019 and we are glad that this certainty is being offered to our markets, our businesses, investors and tenants.”
Mr Groves explained that lessons are being learned in New Zealand after negative gearing was removed as a policy there, so he is glad “both parties support our investors - and the 27 per cent of Australians that live in private rentals”.
The president also raised comments made by shadow treasurer Jim Chalmers, who has said that if elected as Treasurer, he would be willing to lead a national conversation on reform to stamp duty.
Mr Groves said he is pleased by this stance - noting that “without national leadership to phase out this antiquated tax, it will just be a promise of reform from the introduction of the GST in the Year 2000 that remains undelivered”.
Turning his attention to Labor’s plan to provide an extra 10,000 places to regional first home buyers, he re-iterated his support for the expansion of the scheme, before expressing that the REIA would “love to see more investments from both sides of politics on a plan to increase supply of homes to both buy and rent”.
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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