The Property Council of Australia has congratulated the Federal Opposition on its constructive approach to pandemic response measures, welcomed several policy markers flagged in the Opposition Leader’s Budget Reply speech, and once again sought clarification on the ALP’s negative gearing and capital gains tax policies.
‘Australia faces some huge challenges in recovering from the impact of COVID-19,’ said Ken Morrison, Chief Executive of the Property Council of Australia.
‘It’s imperative that all sides of politics and across all levels of government are strongly focused on dealing with the immediate and longer term economic and social impacts of COVID-19.
‘As such, Labor’s support for the Government’s personal income tax cuts and incentives for business investment and job creation are to be strongly welcomed,’ Mr Morrison said.
The Property Council also acknowledged Labor’s continued support for housing construction as a vehicle for economic recovery, including the important contribution of social housing to our economic and social well-being.
‘Labor’s proposal to invest $500 million in repairs and maintenance would help stimulate economic activity fast. There is also an opportunity to do much more to encourage more private sector involvement in the delivery of affordable housing at scale by leveraging taxation settings to encourage more private and institutional investment.
‘As Australia’s biggest industry and employer, the property industry will do a lot of the heavy lifting in getting the Australian economy growing again as well as meeting the housing needs for all Australians,' Mr Morrison said.
Mr Morrison said the Opposition Leader was silent in tonight’s speech on the fate of Labor’s negative gearing policy which has now been rejected at two federal elections.
“If Labor is serious about supporting jobs in housing construction, it would finally put its negative gearing and capital gains tax policies to rest.
“The most comprehensive analysis of the policies by Deloitte Access Economics showed these would have been a jobs and economy killer.
“Far from encouraging new construction, it would have delivered a $766 million drop to construction activity, cost 7,800 construction jobs and shaved $1.5 billion off GDP. Deloitte Access Economics said these outcomes would be worse in an economic downturn.
“It was the wrong policy in 2019, and it would be disastrous coming out of this recession,” Mr Morrison said.
[A summary of the Deloitte Access Economics analysis is available here.]
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