The announcement that Labor will support the status quo for negative gearing and capital gains tax should they form government will be welcome news for homeowners and investors, the REIA said this week.
Real Estate Institute of Australia (REIA) president Adrian Kelly said households and small businesses need the certainty, especially as many mum-and-dad investors have borne the brunt of the rental eviction moratoriums and stepped up to provide social and affordable housing over the past 18 months.
“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 needed by the 27% of Australians who rent their home”, Kelly said.
ATO data shows that that the majority just over 70% of investors own just one investment property.
“Continuing to support successful tax settings that encourage investment and have invested invest assisted investors throughout the COVID-19 pandemic is most welcome in a time of great uncertainty”, Kelly said.
“We also do not want CGT to become overly punitive and disincentivize and discourage households from rightsizing”, he added. “This will particularly be the case as Australia’s population ages.
Kelly concluded by saying that the REIA would be renewing their commitment to axe taxes that impact on housing affordability, such as stamp duty, adding that this will be central to the Government’s recently-announced parliamentary inquiry into housing supply.
