Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

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

rpm logo latest

Labor will dent national economy, GDP, warns expert

By Tim Neary
01 March 2019 | 1 minute read
doron peleg850

Labor’s proposed taxation changes have already resulted in poor investor sentiment, which is likely to fall even further should it come to power, one expert has said.

RiskWise Property Research CEO Doron Peleg said that Labor’s position on negative gearing and CGT has and will continue to impact the broader economy and, in particular, GDP growth.

Mr Peleg was invited to join a roundtable discussion in Canberra in February with the PM, the treasurer and assistant treasurer and other property heavyweights, including Yellow Brick Road, the Real Estate Institute of Australia, Property Investment Professionals of Australia and the Property Council.

Advertisement
Advertisement

He said that there were many concerns expressed.

“I attended the roundtable discussion to talk about our research and insight but also to listen to the concerns of the others and join in a dialogue with them. The attendees expressed their concerns regarding the impact of the proposed taxation changes on housing prices, dwelling commencements and GDP growth. In particular, it was very interesting to hear the concerns that were raised by the development lobby groups.

“Their interest is clear: to increase new development, and this does actually align with Labor’s stated objectives which is to shift investor demand to new dwellings and, therefore, to increase new dwelling supply from developers.”

Mr Peleg said that Labor’s reforms were unpopular at the roundtable.

“When these developers, who are having difficulties meeting pre-sales and sales targets, have clear evidence that dwelling commencements have fallen due to poor investor sentiment and will further fall under Labor’s proposed taxation changes, it follows that they are opposed to these reforms.

“In fact, new independent economic modelling commissioned by Master Builders Australia shows [the reforms] will not increase the supply of new housing or create new jobs in the building industry.”

Mr Peleg said that the developers felt at risk.

“The ALP has proposed limiting negative gearing to new housing and reducing the discount on capital gains tax from the current 50 per cent to 25 per cent to increase housing affordability; however, this solution will only be temporary.

“Frankly, it’s time for Labor to have an open discussion on the consequences of these proposed reforms and what they think they will really mean to the property market in this country.”

Labor will dent national economy, GDP, warns expert
doron peleg850
lawyersweekly logo
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.