Changes will be made to the negative gearing and capital gains tax by January next year if Labor wins the May election
Labor would introduce changes to negative gearing and capital gains tax by January 1 next year if the party wins the May election.
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Federal Labor would introduce changes to negative gearing and capital gains tax by January 1 next year if the party wins the May election.
The negative gearing reforms won’t apply to newly-built homes and existing investment properties, while the capital gains tax discount will be halved for investments entered into after January 1.
Shadow treasurer Chris Bowen says the property tax changes will raise $2.9 billion over the forward estimates.
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“If you already use negative gearing, nothing changes. It’s not retrospective. And you can still use it for new houses,” he said in a statement on Friday.
“Federal Labor’s plan is good for the budget, good for housing construction jobs and fair for first home buyers.”
Labor also announced it would cut the managed investment trust withholding rate in half, from 30 per cent to 15 per cent, to encourage new housing. The Property Council of Australia said it remains strongly opposed to the tax overhaul.
“And deeply concerned with its potential impacts on housing markets and the broader economy at this uncertain time in the cycle,” the group said in a statement.
“In particular, we are concerned with the impact of these tax changes on new housing construction.”
A recent survey commissioned by the Property Council found the policy won’t stimulate new housing construction as hoped.
— AAP
Originally published as Changes will be made to the negative gearing and capital gains tax by January next year if Labor wins the May election
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