THE Real Estate Institute of Australia (REIA) has welcomed the federal Labor Party’s announcement it would support the status quo for negative gearing and capital gains tax (CGT), should they form government.
“The vast majority of property investors are everyday Australians looking to provide for their own retirements who are also instrumental in providing the rental accommodation that is needed by the 27 per cent of Australians who rent their home,” REIA president Adrian Kelly said.
“Australian Tax Office data shows that the majority – just over 70 per cent – of investors own just one investment property.
“Continuing to support successful tax settings that encourage investment and has assisted investors throughout the COVID-19 pandemic is most welcome in a time of great uncertainty.
“We also do not want CGT to become overly punitive and disincentivise and discourage households from right-sizing. This will particularly be the case as Australia’s population ages.
“We thank the opposition for taking on board the advice of the real estate industry as practitioners working at the coalface of property markets and welcome the commitment to keep negative gearing as it is, and not increase CGT,” he said.
In 2019, the REIA ran a major myth busting campaign about negative gearing and CGT to investors and tenants that reached over 10 million property customers.
Mr Kelly said the REIA was renewing its commitment to axe taxes that impact on affordability.
“It is time for the state and federal governments to get rid of punitive stamp duty once and for all; and this will be our centrepiece to the government’s recently announced parliamentary inquiry into housing supply led by Jason Falinski MP.”
Mr Kelly also welcomed the opposition’s commitment to provide bi-partisan support of legislated tax cuts which would put “more money back into the hip-pockets and the economy”.