On 24 April 2016, the Liberal Government released the following Media Release:
“The Turnbull Government will be not be making changes to negative gearing or capital gains tax policy in the May 3 budget.
Labor’s housing tax plan will deliver a reckless trifecta of lower home values, higher rents and less investment.
Labor’s proposal to increase capital gains tax by 50 per cent will discourage Australians making the investments necessary for new and better paying jobs.
Nearly two thirds of Australians who make a capital gain on their investments have a taxable income of $80,000 or less.
Driving down the value of the most important asset for most Australians is not a strategy for economic growth and enhanced prosperity.
The Australian Prudential Regulatory Authority (APRA) has already taken action to ease risks in lending practices.
The evidence is that the previous growth in housing prices has moderated and that housing affordability across Australia is improving.
Now is not the time for risky and damaging proposals such as those put forward by Labor.
Labor is taking a sledgehammer to the ambitions of mums and dads who want to invest – whether it’s established houses and apartments, commercial property, shares in listed companies, or shares in their own business.
Only the Turnbull Government can be trusted to manage our transitioning economy and promote jobs and growth.”
Property owners and investors are likely to cheer this news as at least some certainty is provided to the market. The strength of the housing market over the coming months may give an indication of who is likely to win at the election. Should investors believe that the Liberals will win, property prices may put in a rise as a result.
Source:
https://www.liberal.org.au/latest-news/2016/04/24/rejecting-labors-housing-tax-plan
