Labor Party irks industry group

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The Australian Labor Party earned criticisms from the Real Estate Institute of Australia (REIA) after Bill Shorten, the leader of the party, recently announced that there would be no decisions made regarding changes to existing negative gearing and capital gains taxation arrangements until after the federal election.

REIA questioned whether the ALP made the move to avoid voter backlash in the lead-up to the election.

“All Australians need to know what and when a Labor government, if elected, will do regarding property taxation. It is not acceptable to appear to be ‘having a couple of bob each way’ in the lead-up to the election,” REIA President Adrian Kelly said.

The industry group also said that while they welcome the party’s promise to consult, it should be done now and not after the election.

“Let’s look at all property taxes in a holistic approach and not just negative gearing and capital gains tax as if that’s the panacea to housing affordability,” Kelly said.

There is already enough market uncertainty, especially in the larger states, and a “nothing to see here” approach will only worsen this ambiguity, Kelly said.

“The ALP needs to come clean with what its election policies actually are so that all Australians – including the nearly 100,000 real estate businesses across Australia together with their employees and families – know exactly what they will be voting for and can make an informed decision at the ballot box,” Kelly said.

Under ALP’s proposed negative gearing changes, negative gearing will be limited to newly built properties. The party also plans to halve the capital gains tax discount for properties that are held longer than a year from 50% to 25%.

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  • PI2019 says on 29/01/2019 10:39:07 AM

    The Labor position on negative gearing has not changed by this reported statement. Bowen is on record saying that the changes will come into effect on 1 July 2019 and that is after the coming Federal election.

  • David Manteit says on 02/02/2019 05:18:34 PM

    1) Kill Bill the Dill before his taxes kill you. Can people start to refer to the new tax as 75% Capital Gains Tax ? So any gain you have in the future will need to go in your tax return at 75%. 2) Kill Bill says that only
    Anaesthetists and Finance Managers are the only ones buying investment properties. Then he says that for the first time in 2013 that
    there are more properties bought for investment than owner occupied. So Kill Bill the Dill thinks that 51% of all properties are bought by
    Finance Managers and Anaesthetists. What a Dill he is. Kill Bill's also says that any negative gearing lossses can be offset against the final capital gain. What a hyde to predict there will be a final capital gain !!!! Kill Bill's SLUTS (Shorten Labor Ugly Taxes) will get everyone.
    Did you know that negative gearing stoppage. is not just on property but shares, managed trusts, Artworks ...........ANY ASSET.
    3) Discretionary Trust to be 30% taxed. Kill Bill says there are 718,000 Discreationary Trusts.Do all the family buisinesses know this ?
    4) Franking credits. Yes retirees with SMSFs will lose all their refunds. Did you know that any person in Australia who has under $37,000
    and a fully franked dividend will lose. Its not just retiress. Its anyone with under $37,000, because $37000 is the tax bracket for over 30 cents. David Manteit 0424739923. Kill Bills SLUTS !

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