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.
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.