Property Council Chief Executive Mike Zorbas said the impact of the changes passed by the parliament today would be felt across the property industry.
"According to the government's numbers these new laws are a tax ball and chain that shrinks housing supply by 35,000 homes," Mr Zorbas said.
"The property sector already pays $130 billion in taxes each year and that impacts all buyers because four in every 10 dollars spent on a new home is blown away by taxes and charges."
Mr Zorbas said that while the retention of the new housing carve out was positive, the overall package will undermine investment confidence across the development pipeline.
He said the breadth of the changes, including restrictions on SMSF investment and further reforms to trusts, would have wider consequences beyond housing.
"These tax hikes impact investment in all projects including housing, commercial, and industrial assets that support jobs and productivity."
The Property Council said the Government must closely monitor market activity and investment sentiment as these changes take effect and have the policy courage to act if they constrain investment and new development.
