Hard working Brickies, carpenters, plasterers, painters, sparkies and labourers will be among the hardest hit by Labor’s planned changes to negative gearing and capital gains tax.
Not only will house prices suffer (on top of the existing downturn in the market) and small investors slugged, but a new report has found that there will be up to 32,000 fewer construction industry jobs due to Bill Shorten and Labor’s tax hikes.
The Australian reports:
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.
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 $12bn downturn in construction activity in the first five years of the policy’s implementation.
The report, based on independent peer-reviewed modelling conducted by Canberra-based Cadence Economics, suggests that with housing supply already contracting, Labor’s policy to limit negative gearing to new homes and cut the capital gains tax discount from 50 per cent to 25 per cent would “exacerbate” the current downturn in the construction cycle.
We’ve already seen a downturn in new constructions over recent years, and Labor’s plan will not only hurt mum and dad investors, but will really whack tradies who rely on the growth of the construction sector.
It’s common sense. If you put a $32 billion tax on the building sector there will be serious consequences – less jobs and less profit.
Advance Australia is standing up for our tradies by fighting against Labor’s tax slug on our construction industry.