The Property Council of Australia has published the major parties' election positions on property issues.
Three days out from the federal election, The Property Council of Australia has released statements from each of the major parties outlining their property policies.
Early in the campaign, the Property Council approached the major parties asking them for their position on the issues facing the building industry. Their responses have been published "unfiltered, and without commentary", and make useful reading ahead of the election.
Ken Morrison, Chief Executive of the Property Counci, said, “Elsewhere in the world we are witnessing disruption – with the rise of Donald Trump in the US and last week’s Brexit decision in the UK. They serve as a reminder that voting is a heavy responsibility and that our political system needs to deliver prosperity and fairness to our country.”
We summarise the main points below, highlighting some of the most significant differences in policies.
Tax reform
The Property Council proposed changes to the current stamp duty arrangments. The Property Council says, "Modelling commissioned from Deloitte Access Economics found that replacing stamp duty with GST revenue would boost GDP by $3.3 billion."
The Labor party is proposing limiting negative gearing to new housing, and grandfathering existing negative gearing arrangements. Labor also proposes halving the capital gains tax discount to 25% for all properties purchased after 1 July 2017.
The coalition doesn't support Labor's plan, and proposes keeping existing negative gearing arrangements in place.
The Property Council supports retaining current negative gearing arrangements.
The ABCC
The Property Council and the Liberal Party support the reintroduction of the Australian Building and Construction Commission.
The Liberal party writes, "Unlawful conduct in the building and construction sector can add up to 30% to the costs of construction."
The Property Council says, "Reinstating the ABCC will provide a critical boost to productivity across both commercial property and residential construction. This is important in boosting housing affordability."
Labor opposes the reintroduction of the ABCC, and writes, "The ABCC will reduce productivity, increase injuries, and strip construction workers of common law rights."
Affordable housing
The Property Council supports reestablishing the Housing Supply Council to provide data on housing supply across Australia. The council also proposes providing incentive payments for reform of planning, turbocharging housing supply, and delivering innovative housing solutions. The council supports the use of innovative funding models, such as REITs, to allow the market to fund affordable housing.
The coalition has developed the Affordable Housing Working Group to look at ways to boost the supply of affordable housing.
The Labor party, if elected, will appoint a Minister for Housing and Homelessness, and will reestablish the Housing Supply Council.
Unlocking housing equity
The Property Council proposes adjusting the asset test threshold for pensioner homeowners.
Read more:
REIWA kicks off discussion on negative gearing
Economy cannot withstand Labor's experiment with negative gearing
Changes to negative gearing not the answer to housing affordability