Property Council welcomes Labor’s housing pledge

The Property Council of Australia has welcomed the commitment contained in the Opposition’s Budget in Reply speech to establish a $10 billion Housing Australia Future Fund but again called on Labor to rule out changes to negative gearing and capital gains tax.

Property Council chief executive, Ken Morrison, has welcomed the focus on federal investment into affordable and social housing.

“Housing affordability is a dire issue for Australia and the Housing Australia Future Fund is an innovative approach to house less fortunate Australians,” Mr Morrison said.

“We need greater supply across the entire housing spectrum, and this investment would certainly be welcome by the industry.”

While welcoming the housing commitment, the Property Council described the speech as a missed opportunity for the Opposition to rule out changes to negative gearing and capital gains tax arrangements.

“Changing current negative gearing or CGT arrangements would be the wrong policy, at the wrong time and have a perverse impact on housing affordability,” Mr Morrison said.

“Deloitte Access Economics analysis found that Labor’s negative gearing and capital gains tax policies, taken to the last two elections, would have shrunk the economy by $1.5 billion.

“It is estimated that this policy would inflict a $766 million hit on construction, cost 7,800 construction jobs, and shave $1.5 billion off GDP just when we need to focus on recovery and employment opportunities,” Mr Morrison said.

The Property Council welcomed Mr Albanese’s comments on the need for an expansion of Australia’s quarantine capacity and the importance of energy efficiency in meeting net zero ambitions.