In response to the ALP’s policy to abolish negative gearing on all but newly constructed dwellings, Australia’s major real estate groups — along with key industry bodies such as the Real Estate Institute of Australia (REIA) — have come together to campaign against changes that will, if ever enacted in their present form, decimate not just our own industry but the broader Australian economy: ripping $19bn annually out of the economy, with the risk a recession will be triggered in the process.
We have been accused of blatant self-interest and it is a charge we will wear; our industry employs 1.1 million Australians — many of them younger people and women — and inflicting the kind of massive hit on it that this policy would if introduced will hurt not just “the rich,” but tens of thousands of ordinary people who rely on the property sector for their jobs, livelihoods, and their ability to provide for their families.
In fact, Labor’s policy won’t really hurt “the rich” at all: the overwhelming majority of property investors affected are mums and dads earning less than $100,000 per annum, and it is these people who are really in the firing line, as well as those in our industry who provide services that cater not just to investors but to home buyers, sellers, landlords and their tenants.
Today — in a new video comment — four prominent leaders from the real estate industry discuss some of the issues inherent in Labor’s negative hearing policy, and explain why this policy is so completely misdirected and the assumptions behind it wrong.
Ray White Group Director Dan White talks about why the policy will not help the construction sector, as claimed; LJ Hooker CEO Grant Harrod discusses why demand is not the reason for first home buyers finding it difficult to enter the property market; Raine and Horne Executive Chairman Angus Raine explains why negative gearing is critical to the broader economy, and why ending it could cause a downturn or recession; and REIA board member Chris Mourd talks about renters and first home buyers, with an emphasis on affordability and the availability of rental stock.
Please take the few minutes to share with our industry participants today, as they deliver this important message. We encourage everyone following this debate over negative gearing to circulate today’s video so both sides of this debate are heard, enabling Australians to make a more informed choice.