Invest
Labor’s negative gearing policy had $1.5 bn price tag
Economic modelling has reportedly shown that Labor’s negative gearing policy would have shrunk the economy by $1.5 billion and was a key reason for the election defeat.

Labor’s negative gearing policy had $1.5 bn price tag
Economic modelling has reportedly shown that Labor’s negative gearing policy would have shrunk the economy by $1.5 billion and was a key reason for the election defeat.

Deloitte Access Economics and the Property Council undertook an analysis of the impact of changing negative gearing and capital gains tax policy and tested it against key assumptions about the policy’s impact on new housing construction, housing affordability and rents.
The Property Council’s chief executive, Ken Morrison, said the post-election survey and results of economic modelling provided a clear verdict on Labor’s negative gearing and capital gains tax policy.
“It would have delivered a $766 million hit to construction, cost 7,800 construction jobs, made almost no difference to housing affordability by 2030, and shaved $1.5 billion off GDP at a time we can least afford it,” he explained.
Separately, the Property Council noted it had also commissioned a survey of 1,600 voters across 16 marginal electorates to understand the impact of the ALP’s policy on the election outcome. For 34 per cent of non-Labor voters, it was a “very important” reason why they didn’t vote for Labor.
NestEgg has previously looked at the major advantages and disadvantages of a change to Australia’s negative gearing policy.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author

About the author


Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. ...Read more

Property
Labor’s ‘Help to Buy’ scheme not without its risks
With Anthony Albanese sworn in as Australia’s 31st PM, home buyers are excited at the prospect of accessing the new ‘Help to Buy’ scheme, but a property expert has warned that the risks may be g...Read more

Property
Australia's housing market is entering a ‘broad-based correction phase’
Westpac believes the housing market downturn is now underway. ...Read more

Property
ANZ now expects house prices will end the year lower
With higher interest rates on the horizon, the bank is forecasting larger house price declines than previously expected. ...Read more

Property
Which capital cities are most attractive to property investors?
A new survey has suggested that investor attention is shifting away from Australia’s two largest capital cities. ...Read more

Property
Market uncertainty fails to discourage foreign property investors
While interest from foreign investors in Australian property has remained strong, HLB Mann Judd warned that tax increases could see demand shift to other markets. ...Read more

Property
Regional renters forced to spend more of their income than ever before
Renters in regional areas are spending nearly as much on rent as home owners are spending on mortgage repayments. ...Read more

Property
Aussie home buyers now need to save for over 11 years for a deposit
Since early 2020, the time needed to save for a deposit has increased by more than two years. ...Read more