A new report from the Housing Industry Association (HIA) predicts that Labor's planned changes to the negative capital gains and capital gains taxes will have consequences for both tenants and seniors. owners.
"HIA has always said that the changes to the debt reduction and capital gains tax on housing were a bad policy," said Graham Wolfe, director General of HIA.
Wolfe said the rental offer was crucial, noting the September 2018 quarter, when Sydney rents had fallen in real terms for the first time since December 2006.
"The recent additional supply of rental properties has underpinned the improvement in affordability. Changing the tax treatment of residential investment properties may jeopardize good work and increase rental prices, "he said.
A study commissioned by HIA and conducted by JWS Research found that 52% of respondents felt that rents would increase because of the negative impact of these changes.
The HIA also found that 92% of tenants wanted to buy their own homes and that the changes proposed by the Labor Party would weigh heavily on the savings plans of this group.
"If these changes are made, rents will increase as the offer dries out due to lack of investment in new housing. This will make renting a home less affordable. If rents increase, tenants who save for a deposit for their own home will take a step back, "said Wolfe.
The Labor Party is considering limiting the negative effects of gears on newly constructed properties, which means that net losses, including interest expense, can be deducted from the total taxable income of investors. At the same time, the tax will be payable on 75% instead of 50% of the capital gain realized on a property.
These changes go against the investment, according to Wolfe. "They do not recognize that private rental housing provides housing to nearly three million families and that reducing the supply of private rental housing will only increase rents," he said.
Wolfe thinks that the problem of housing affordability can not be solved by taxing housing.
"Yet this policy is precisely about doing that," he said.
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