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.
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.
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
