Labor’s $32 billion plan to end negative gearing for existing homes and slash the capital gains discount would lead to a fall in new housing construction of up to 42,000 dwellings over five years and 32,000 fewer jobs across the country, according to independent modelling of Bill Shorten’s key property policies.
Conservative Party leader Cory Bernardi says the Labor plan is too short term - and it would be simpler and easier just to lower taxes.
The Australian reports, warning of a significant contraction in housing supply, which could further strain the major capitals Sydney and Melbourne struggling to cope with population growth, the modelling forecasts a downturn in housing supply equivalent to accommodating 100,000 people.
A report commissioned by Master Builders Australia, using similar modelling techniques to that of the former Labor government’s Henry tax review, has forecast a potential $12 billion downturn in construction activity in the first five years of the policy’s implementation.
Senator Bernardi has told ABC Radio Adelaide Labor's complicated plan has the potential to distort the investment market without solving anything.
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