Ghost Treasurer Chris Bowen recently revealed that the Labor Party's proposal to change the policy on the Negative Capital Gains and Capital Gains Tax would begin on January 1, 2020, if the party wins out. federal elections.
This announcement comes after more than a month when Australia's investor-owned board asked the party to clearly state the timing of implementation of the proposed amendments with respect to negative gears .
Indirect confirmation that the tax changes will eventually be implemented will not please industrial groups. They reiterated the implications of the plan for housing markets.
"The REIA has always been concerned about the impact of this policy on housing markets, buyers, tenants and economic activity. There is almost a whole series of analyzes and reports showing the detrimental effects of the policy on parent-owner investors, homeowners, tenants, the construction sector, state governments and homeowners. economy, "said REIA President Adrian Kelly.
The concern is magnified in the current market. SQM Research recently revealed that real estate sales turnover is expected to further decline from 12% to 15%, resulting in a decline in state stamp duty revenue of about 2.3 billion of dollars.
In addition, house prices would fall from 5% to 12% weighted average in capital cities between 2020 and 2022, in addition to other declines recorded.
Rents are expected to increase from 8% to 15% weighted average in capital cities between 2020 and 2022; and housing construction will decrease by 25% to 30% from 2019, which will have an impact on employment and GDP.
"For the first homebuyers, who, according to the Labor Party, should see the affordability of improved housing through a" leveling of the playing field ", will face a declining economy, with prospects for jobs, the possibility of higher interest rates under a Labor government and higher rents while they save for a deposit, "Kelly said.
While Australia's Property Council was relieved that the opposition was changing the start date of the amendments as of July 1, the group still strongly opposes the project.
The real estate board is worried about the impact of these tax changes on the construction of new housing. A survey of investors revealed that this policy would not create the stimulus that the Labor Party had taken for construction.
Meanwhile, Master Builders Australia has stated that the coming into force of the proposed changes in January 2020 does nothing to quell concerns about the impact on construction activity and energy efficiency. 39, housing supply.
"Our model shows that labor policy will reduce the number of new homes by 42,000 and deprive the economy of $ 11.8 billion in construction activities. Master builder forecasts tell us that we need 62,000 new homes each year to meet the demand for housing in the community, "she said. We need all the incentives to invest on the table rather than removing incentives from one part of the market to support another, "said Denita Wawn, CEO of Master Builders Australia.
Interest rates are at their lowest for over 50 years, so there are excellent rates available. The best thing to do is to compare the rates of all the lenders. Let us help you solve this problem – Compare home loans now
Top suburbs:
Mayfield
,
Torrensville
,
Eagle Valley
,
Geelong West
,
mt colah
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and we will then do what is necessary for an Australian mortgage broker to contact you and establish a solution. What features or types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
