The Real Estate Institute of Australia (REIA) has launched a campaign that emphasises its opposition to the Labor Party's proposed tax policy changes.
"The campaign will ensure that the issues relating to the taxation of property are an integral part of the campaign and that all political parties, candidates and, importantly voters know the consequences of the opposition’s policy on negative gearing and capital gains tax,” REIA President Adrian Kelly said.
If elected, the Labor Party is set to abolish negative gearing on further purchases of established investment property starting from Jan. 1, 2020. The party also proposes to halve the capital gains tax exemption from 50% to 25% from the same date, as well as grandfather negative gearing on existing property investments.
“REIA is concerned about the adverse economic impacts the policy would have, particularly during a property market downturn. The policy, if adopted, will have negative impacts on mum-and-dad investors, homeowners, renters, the construction industry, state governments, and the economy," Kelly said.
The industry group is using social media platforms to spread awareness about the threats posed by the potential changes. The campaign is set to coincide with the election campaign.
“Our industry makes a huge contribution to the economy, and REIA does not want to see economic growth put at risk by the proposal," Kelly said.
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