Another property body has called out for Bill Shorten and Labor to clarify key elements of its negative gearing policy, which have the potential to impact investors' buying decisions.
The Property Investors Council of Australia and its chairman Ben Kingsley has asked for the federal opposition to clarify when it intends to implement their negative gearing policy if elected.
“Restricting negative gearing to new property was always a ridiculous so-called ‘solution’ to Sydney’s strong price growth, which has now well and truly dissipated because it was merely a sign of the peak of a market cycle,” Mr Kingsley said.
“If the policy was absurd back then, it’s even more so now, with the national economy flat-lining due to a number of poor indicators including significant property price falls in our two biggest cities.
“Labor supposedly represents everyday Australians, yet the policy is likely to see the wealth of their constituents nose-dive even more because of the negative impact it will have on the market.”
Mr Kingsley’s request to clear up the timeline of the negative gearing policy due to the majority of Australians having their wealth related to property in some way, he claimed.
“Having the threat of their home’s value falling even further is no doubt part of the reason why our economy is in the doldrums,” he said.
“It’s clear that people are fearful about these dangerous changes – both property owners and investors alike – so if federal Labor is thinking about introducing these measures as early as July this year, buyers need to have enough time to organise their finances and come to the market in the next few months to meet this deadline.
“With Labor tipped to win the federal election, the uncertainty is affecting the Australian property market and the broader economy, which is why Bill Shorten should announce the party’s intensions today – there is no reason not to tell us their plans as the policy was formulated years ago.”
Mr Kingsley’s comments follow those made by the Real Estate Institute of Australia’s Adrian Kelly, as published previously.
“All Australians need to know what and when a Labor government, if elected, will do regarding property taxation,” Mr Kelly said previously.
“It is not acceptable to appear to be ‘having a couple of bob each way’ in the lead up to the election.”