Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Labor’s negative gearing policy had $1.5 bn price tag

Labor Party

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.

Advertisement
Advertisement

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.

Labor’s negative gearing policy had $1.5 bn price tag
Labor Party
nestegg logo

Cameron Micallef

Cameron Micallef is a journalist at Nest Egg, writing primarily about personal wealth and economic markets. 

Prior to this, Cameron worked for Australian Associated Press. He graduated from the University of Wollongong with a double degree in communications and commerce.

You can contact him on: This email address is being protected from spambots. You need JavaScript enabled to view it.

subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
confused - are these pre or post tax being deducted? It talks about take-home pay so just want to clarify....
Anonymous - The problem is massive over-metroplitanisation. Income tax and GST bias businesses to locate where they can get customers and workers for less effort.......
Skeptic - Having money squirrelled away in superannuation is comforting in some ways, but I am concerned that Australians have nearly three trillion dollars in.......
Dr Livingston - Not so long ago, 5% unemployment was the sought after quantification by the RBA that the economy was doing well. This chase to zero sends unnecessary.......