More than $1.8 billion per year in repair and maintenance work on negatively geared homes will be under threat from Labor’s policy to impose restrictions on negative gearing.
Denita Wawn, CEO of Master Builders Australia said, “Thousands of small mum and dad building businesses and tradies in every city, town and region around Australia would feel the impact of Labor’s policy progressively if it is rolled out.”
“This work is the bread and butter of so many builders and tradies and Labor’s policy will hurt the viability of their business and will put their livelihoods at risk,” she said.
“Repairs and maintenance and maintenance work is a lifeline for many home builders when times are tough as they have been in markets such as Perth and Adelaide for the past few years and we can expect the same in Sydney and Melbourne as those markets continue to fall,” Denita Wawn said.
“This work is not about renovations or capital improvements, it’s not about adding swimming pools or pergolas, this is the day to day running repairs that keep a home up to standard for residents and renters,” she said.
“Labor’s promise to restrict negative gearing will make investing in these essential repairs significantly less attractive as it is implemented,” Denita Wawn said.
“The next Federal Government needs to back the thousands of small building businesses who repair and maintain negatively geared investment properties, especially as the housing market softens, not bring in policies that will put their businesses at risk,” Denita Wawn said.
Source: Master Builders Australia