Australians reject risky changes to property tax

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The Property Council of Australia has congratulated Prime Minister Scott Morrison and the Coalition on 2019’s federal election result.

“This is an extraordinary electoral victory for the Government and we congratulate the Prime Minister and his colleagues for securing another term of office,” said Ken Morrison, Chief Executive of the Property Council of Australia.

“While we don’t yet know if the Coalition will have a majority in the Parliament, it’s clear that they will be able to form government and we trust deliver stable government throughout the next parliamentary term.

“The Property Council also thanks outgoing Opposition Leader Bill Shorten and his colleagues for their service to the nation and for their engagement with us.

“The election result shows that Australians have rejected risky taxation changes at such an uncertain time in the property cycle.

“A key plank of the Opposition’s policy agenda were big changes to negative gearing and big increases to capital gains tax, and the election result can only be seen as a repudiation of this policy.

“Construction activity is falling sharply, house prices are declining and economic growth is slowing – this was the wrong policy and the wrong time.

“Negative gearing has been a long-established feature of the Australian tax system and supports 1.3 million Australian property investors, the overwhelming majority of whom are everyday Australians saving for their future.

“These investors also support the housing choices for the one-third of Australian households who rent their home.

“Australians have sent a clear message to all of our parties to leave negative gearing and capital gains tax alone,” Mr Morrison said.

“Labor had more than three years and two elections to try and persuade Australians of the merits of their policy, and they have been rejected on both occasions. It’s time to put the issue to rest.

“Australia’s housing markets – worth nearly three times the value of the stock market – are undergoing significant transitions with big impacts on the economy, households and housing choices.

“It will be important that the policy framework for housing be front and centre of the Government’s agenda over this term of parliament.”

Mr Morrison said the Property Council looked forward to working with the returned government on the issues that were important to the industry.

“We look forward to the Coalition’s promised help for first home buyers, and investment in nation building and city shaping infrastructure projects which will drive productivity and improve liveability.

“There are challenges ahead in the property industry, especially in the residential construction sector which is slowing.

“The Government needs to prioritise measures which will boost confidence and deliver certainty for one of the big engines of the Australian economy,” Mr Morrison said.

Source: Property Council of Australia