In a momentous and timely win for property investors, Labor has finally decided to support the status quo for negative gearing and capital gains tax should the party form a government after the next Federal Election.
In a press conference held in Brisbane, the Leader of the Opposition, Anthony Albanese MP, finally provided landlords with the words of support they have been waiting quietly for since the 2016 Federal Election. “We will maintain existing regimes for negative gearing and capital gains tax[i],” Mr Albanese told reporters.
Labor has also sought to halve the capital gains tax discount from 50% to 25% on new properties. Angus Raine, Executive Chairman, Raine & Horne, applauded the common-sense announcement. “This decision recognises these policies would have hurt the retirement plans of millions of mum and dad investors, the Australian economy, and cost tens of thousands of jobs in the construction and property sectors,” he said.
“Moreover, if the ALP’s intention was to improve housing affordability, measures such as the new Family Home Guarantee for single parents are a significantly more positive way to help more Australians into homeownership.”
Angus continued, “As a wealth-building strategy, negative gearing benefits working Australians, who account for roughly two-thirds of investors in this country and include nurses, primary school teachers and tradies.
“Many of these people are either frontline workers in our healthcare system or are doing it tough due to the current lockdowns. Therefore the Opposition Leader’s announcement will provide some welcome good news.”
In the leadup to the 2019 Federal Election, Raine & Horne and other real estate firms combined in a major campaign, “Negative Gearing Affects You.” [insert link https://www.raineandhorne.com.au/negative-gearing-affects-you].
The announcement has come at a critical time
REIA President Adrian Kelly said households and small businesses need certainty as 12 million Australians remain in lockdown. “Many mum-and-dad investors have borne the brunt of the rental eviction moratoriums and stepped up to provide social and affordable housing through this period.
“The vast majority of property investors are everyday Australians…who are also instrumental in providing the rental accommodation that is needed by the 27% of Australians who rent their home.
“ATO data shows that that the majority – just over 70% – of investors own just one investment property.
“Continuing to support successful tax settings that encourage investment and has assisted investors throughout the COVID-19 pandemic is most welcome in a time of great uncertainty.”