Labor's hit to the property market exposed

 

New analysis has confirmed that Labor’s property tax will damage Australia’s property market and broader economy.

Independent economic modelling commissioned by the Master Builders Association (MBA) has confirmed that new builds will slow, jobs will be lost and billions drained from the economy under Labor’s property tax.

The MBA found that by raising taxes on housing over five years, Labor’s policies could result in up to 42,000 fewer new dwellings being built, 32,000 less full time jobs and an $11.8 billion drop in building activity.

The MBA report joins a growing list of experts saying that Labor’s policies would have a significant impact on Australia’s economy and property market, particularly at a time when the housing marking is softening.

RiskWise warned that median house prices in New South Wales and Victoria could fall about 9 per cent, Citi’s research found Labor’s policy could “accelerate the cyclical weaknesses in housing prices” and Standard and Poor’s warned of the consequences of falling house prices on the broader economy.

Labor’s property tax will punish not only the 1.3 million Australians who negative gear, but every Australian with equity in their home.

Bill Shorten must admit he got this one wrong and ditch his ill-conceived property tax plan.

With Australia’s housing market cooling over 12 consecutive months in our capital cities, this is the worst possible time for Labor to push its property tax.

Under Labor you will always pay more with its $200 billion in extra taxes whether it be on your earnings, savings, housing or retirement.