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Nothing to ‘see-GT’ here: Investors dig in as CGT fight heats up
Exclusive Real Estate Business and Smart Property Investment polling has indicated that 77 per cent of investors say they won’t change strategy, or will avoid selling completely, if capital gains tax (CGT) concessions are cut.
The findings contradict claims that cutting the discount would lower housing prices, with investors signalling they’re less likely to list properties without the discount.
The survey, conducted by Agile Market Intelligence between 11 February and 17 March, paints a stark picture of investor defiance.
More than one in three investors, 35 per cent, said they would hold onto their property for longer if the tax changes are introduced.
A further 14 per cent said they would not sell at all.
Just 23 per cent of respondents indicated they would rush to offload assets earlier to avoid higher tax, while 28 per cent said their selling timeline would remain unchanged.
In other words, nearly half of investors are signalling they will tighten their grip on housing stock, not release it.
The results have landed as industry heavyweights escalate their warnings to Canberra.
The Housing Industry Association, Master Builders Australia, the Property Council of Australia and the Real Estate Institute of Australia have all sounded the alarm, arguing any move to scrap or reduce the CGT discount risks throttling new supply.
“At a time when interest rates are rising, a war is waging, and the country is in a housing crisis, now is the time to introduce policies that turbocharge new housing supply,” the statement read.
“Builders, renters and home owners cannot afford policies developed in a silo that would stall or reduce the number of new homes being built.”
To date, Treasurer Jim Chalmers has refused to rule out changes to the CGT discount, announcing: “The Budget will be about productivity. We’re working up a productivity package. There will be a savings package that we’re working on. We’ll consider whether more steps can be taken on tax reform.”