Original article by Simon Benson
The Australian – Page: 1 & 6 : 24-Oct-18
Independent modelling by Cadence Economics has examined the likely impact of Labor’s proposed negative gearing and capital gains tax reforms on the residential property market. It concludes that the policy could result in new dwelling commencements falling by between 10,000 and 42,000 over a five-year period. This would in turn reduce construction activity by up to $12bn over this period and result in between 7,500 and 32,000 fewer jobs in the sector. Master Builders Australia CEO Denita Wawn notes that housing approvals have peaked since Labor announced its policy two years ago.
CADENCE ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY, MASTER BUILDERS AUSTRALIA INCORPORATED, AUSTRALIAN BUREAU OF STATISTICS