According to recent polls reported by realestate.com.au, the ALP’s property tax plans which consists of changes to negative gearing and capital gains tax (CGT) are struggling to gain support with Australian voters in the lead up to the coming federal election.
As stated in the survey done by JWS Research appointed by the Housing Industry Association (HIA), two-thirds of Australians professed they did not understand Labor’s suggested tax changes completely. In addition, those who knew how the proposed changes could affect them were most likely to resist the proposed adjustments. Furthermore, those that protested Labor’s property tax policies exceeded those who supported them by two to one.
Three-quarters of the survey’s participants also stated that they hope there would be an evaluation of the tax changes first before implementing them.
The poll done by JWS Research involved all age groups and socio-economic backgrounds, together with residents of marginal seats of every major party.
According to HIA Managing Director Graham Wolfe, the study validates that the proposed tax changes to negative gearing and CGT for property were “bad policy”. He also supported what the research found that most voters have little understanding of how Labor’s tax changes would impact them.
“Australians are being asked to make a decision on a policy that will harm them directly, without fully understanding the consequences or the policy objectives,” he added.
“If these changes are made, rents will rise as supply dries up due to a lack of investment in new housing. This will make renting a home less affordable.”
Bill Shorten will not reassess his property tax plans
Labor has promised to reduce negative gearing tax concessions on January 1 in the event that they win the federal election. Labor leader Bill Shorten recently declared that he will not reassess his tax policies to limit negative gearing tax concessions to just buyers of new properties.
He believes Labor’s tax reforms would guarantee that more housing would be constructed that would prevent uncontrollable property prices. He also added that he would back first homebuyers more than investors. Further, Mr Shorten believes that Labor’s property tax changes would ensure that more money would go back into schools and hospitals.
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