Author: Real Estate Institute of Australia
The Real Estate Institute of Australia (REIA) has welcomedthe leader of the oppositions announcement that the Federal Labour Party willsupport the status quo for negative gearing and capital gains tax (CGT) shouldthey form government.
REIA President Adrian Kelly said households and smallbusinesses need certainty as 12 million Australians remain in lockdown.
Many mum and dad investors have borne the brunt of therental eviction moratoriums and stepped up to provide social and affordablehousing through this period.
The vast majority of property investors are everydayAustralians looking to provide for their own retirements who are also instrumentalin providing the rental accommodation that is needed by the 27 per cent ofAustralians who rent their home.
Australian Tax Office data shows that the majority just over70 per cent of investors own just on investment property.
Continuing to support successful tax settings thatencourage investment and has assisted investors throughout the COVID-19 pandemicis most welcome in a time of great uncertainty.
We also do not want CGT to become overly punitive and disincentiviseand discourage households from rightsizing. This will particularly be the caseas Australias population ages.
We thank the opposition for taking on board the advice ofthe real estate industry as practitioners working at the coalface of propertymarkets and welcome the commitment to keep negative gearing as it is, and notincrease CGT, he said.
Time to axe taxes that impact housing affordability
In 2019 REIA ran a major myth busting campaign aboutnegative gearing and CGT to investors and tenants that reached over 10 million propertycustomers.
Mr Kelly said that REIA was renewing their commitment to axetaxes that impact on affordability.
It is time for the State and Federal Governments to get ridof punitive stamp duty once and for all; and this will be our centrepiece tothe Governments recently announced parliamentary inquiry into housing supplyled by Jason Falinski MP.
Mr Kelly also welcomed the oppositions commitment to providebi-partisan support of legislated tax cuts which puts more money back into thehip-pockets and the economy.
