Prime Minister Scott Morrison led the coalition to a surprise victory in this weekend's federal election, which means that the negative gear remains unchanged.
Massive changes to the negative gear and the capital gains tax constituted a vital platform for the Australian Labor Party, which many hoped to win in the elections on May 18.
However, the results of these elections "show that Australians have rejected risky tax changes at such an uncertain moment in the property cycle," said Ken Morrison, managing director of the Property Council of Australia.
"One of the key elements of the opposition's political agenda was to substantially alter the negative gear and substantially increase the capital gains tax, and the election result can only be considered as a repudiation of this policy, "he said.
"Activity in the construction sector is falling sharply, housing prices are down and economic growth is slowing down – it was a bad policy and of a bad moment. "
Negative gears are a long standing feature of the Australian tax system and support 1.3 million Australian real estate investors.
"The vast majority of investors are" ordinary Australians who are saving for their future, "said Ken Morrison.
"These investors also support housing choices for one-third of Australian households renting their homes. The Australians have sent a clear message to all our parties, asking them not to touch the negative capital gains and capital gains taxes. "
Peter Koulizos, president of the Property Investment Professionals of Australia (PIPA), added that the election results showed that all Australians attached great importance to property and were willing to vote accordingly to protect their property. expensive.
"Labor policy aimed at restricting negative gearing and reducing the concession on capital gains tax has always been poor, but particularly in a generally disappointing real estate market environment", said Mr. Koulizos.
"Creating a campaign" We and them "by ranking all homeowners as" greedy "also favored no opposition from the vast majority of real estate investors who own only one property and are simply looking to improve their financial future. "
Now that the elections are over, the Urban Development Institute of Australia (UDIA) has urged the government to ensure that measures to support the real estate sector, including with regard to access to credit, remain at the center of concerns.
"UDIA congratulates the Coalition on its return to government and applauds its commitment to making housing affordable and creating more sustainable cities through its record $ 100 billion commitment to infrastructure in the United States. over the next decade, as well as initiatives such as the First Home Loan Deposit Scheme, "says UDIA National President Darren Cooper.
"The real key now is that the government is asking APRA to reduce the benchmark rate of its interest rate service, which banks must use to assess the interest rates. housing loan applications.
"The current rate of 7% is unrealistic in the current interest rate environment and keeps thousands of buyers away. Even a benchmark rate of 5.5% would be a cautious buffer on current rates and allow home loans and, consequently, real estate markets to recover. "
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