The President of the Real Estate Institute of Australia (REIA) President Adrian Kelly said the recent announcement made by Leader of the Opposition, Bill Shorten, that there would be no decisions made regarding changes to existing negative gearing and capital gains taxation until after the federal election, is because "the ALP doesn’t want any voter backlash in the lead up to the election".

“All Australians need to know what and when a Labor Government if elected, will do regarding property taxation. It is not acceptable to appear to be ‘having a couple of bob each way’ in the lead up to the election,” Mr Kelly said. 

Labor's proposed changes - at a glance

• Negative gearing reform.
• Halving the 50 per cent deduction on capital gains allowed across asset sales.
• Policy to take effect at a yet-to-be-confirmed date.

Under the ALP's negative gearing and capital gains tax policies, the REIA says mum-and-dad investors, homeowners, builders and tradies and state governments and constituents would all be negatively impacted by the changes.

Mr Kelly told WILLIAMS MEDIA these concerns must be aired before the election.

“REIA welcomes the promise to consult but let’s do that now, not after the election, and let’s look at all property taxes in a holistic approach and not just negative gearing and capital gains tax as if that’s the panacea to housing affordability."

Proposed changes "adding to market uncertainty"

Mr Kelly said there is already enough market uncertainty.

"Particularly in the larger states - a “nothing to see here” approach will only exacerbate this uncertainty.

“The ALP needs to come clean with what its election policies actually are so that all Australians – including the nearly 100,000 real estate businesses across Australia together with their employees and families - know exactly what they will be voting for and can make an informed decision at the ballot box,” Mr Kelly said.

In a statement on its website, Labor points to the decline of ownership rates for young people aged 25-34, which it says has gone from 60 per cent to 48 per cent in recent years, as the catalyst for the plan. 

The party is yet to confirm exactly when the proposed reforms will come into effect.

Related reading:

Labor's proposed changes 'adding to market uncertainty', says REIA

Negative gearing rumblings gaining in volume

Renters will be victims of negative gearing reforms, says REIA