Labor says negative gearing plan will boost jobs
But the Federal Opposition's plan isn't pleasing all the property pundits.
In the Opposition’s budget reply speech, Labor leader Bill Shorten claimed the party’s plan to limit negative gearing concessions to newly-built properties will increase supply and bolster the economy. (You can read full details of the plan. which was announced earlier this year, in our summary.)
“Our policy will mean more new houses, greater supply [and] thousands of new jobs: carpenters, tilers, electricians and plumbers,” Shorten said.
Shorten pointed to decreasing affordability, saying an average Sydney home costs 15 times a young person’s average income, and saving a 20% deposit takes nearly 10 years.
“Buying a home is only getting harder, yet the government thinks the priority is tax breaks for investors. And yesterday on ABC radio, this out-of-touch Prime Minister stunned listeners by announcing his new housing plan: get yourself some rich parents and get them to shell out,” he said.
Shorten claimed Labor’s plan would save the budget $32 billion over the decade. Labor’s plan drew criticism from the Property Council of Australia, with CEO Ken Morrison claiming stamp duty and restrictive planning systems were the real culprits behind declining affordability.
“Instead of a debate about supply and demand, we’ve had a negative gearing debate masquerading as a housing affordability debate,” Morrison said.
Morrison cited 2013 research from the now-defunct National Housing Supply Council which claimed Australia had a housing deficit of 228,000 homes.
“Australia’s challenge is to increase supply so that we can tackle the housing deficit – and help make housing more affordable.”