18 February 2019
Media Release - #2019025, 2019

Housing tax warning

Joint media release
with Senator the Hon Zed Seselja
Assistant Minister for Treasury and Finance

Housing industry leaders have raised serious concerns about Labor’s housing taxes at a Housing Industry Roundtable at Parliament House today.

Attendees included Property Council CEO Ken Morrison, Riskwise CEO Doron Peleg, Master Builders Association CEO Denita Wawn, the Real Estate Institute of Australia CEO Jock Kreitals and Wizard Home Loans founder Mark Bouris.

The Treasurer Josh Frydenberg and Assistant Minister for Treasury and Finance Zed Seselja attended the forum to hear first-hand from industry experts.

“The clear message from the industry is that Labor’s plan to abolish negative gearing as we know it and increase the capital gains tax by 50 per cent will have a significant detrimental impact on Australia’s housing market and the broader economy,” Treasurer Josh Frydenberg said.

“This is a lose-lose policy; if you own your own home it will be worth less, and if you rent your home it will cost you more.

“With Australia’s housing market cooling, now is the worst possible time for Labor’s new housing taxes.

“What’s worse is that Labor can’t even name a start date for their signature negative gearing policy, creating even more uncertainty for Australians and the housing sector, and putting a cloud over their own costings.

“Bill Shorten must listen to the experts, admit Labor got this one wrong and ditch their big new housing taxes.”

The Assistant Minister for Treasury and Finance Zed Seselja said Australians who negative gear or make a capital gain are not rich.

“Two in three people who negative gear have a taxable income less than $80,000 and most own just one investment property,” Assistant Minister Seselja said.

“More than six in 10 of those taxfilers making a capital gain have a taxable income under $80,000, this includes tradies, farmers, nurses, teachers and hard working families who save and invest to get ahead.

“Labor’s idea of fairness is not only to discourage those hard working Australians who save, but to punish those who do.

“Labor’s housing taxes are part of $200 billion in additional taxes which will stifle growth, cost jobs and damage confidence. 

“In contrast, the Liberal National Government is delivering on our plan for a stronger economy that guarantees the essential services that Australians rely on.”