The Property Investors Council of Australia (PICA) has called upon the Labor government to be clear on the timeframe for implementation of its proposed negative gearing changes, in the event the party wins in the upcoming election.

It comes a week after the Real Estate Institute of Australia called out the party for announcing there would be no decisions made regarding changes to existing negative gearing and capital gains taxation arrangements until after the federal election.

Related reading: Industry body calls on Labor to come clean on negative gearing policy

PICA Chairman Ben Kingsley said the ALP may be having second thoughts about the negative gearing policy in light of falling house prices around the nation.

The planned reforms have been the foundation of the ALP's campaign for three years.

“Restricting negative gearing to new property was always a ridiculous so-called ‘solution’ to Sydney’s strong price growth, which has now well and truly dissipated because it was merely a sign of the peak of a market cycle,” Mr Kingsley said. 

“If the policy was absurd back then, it’s even more so now, with the national economy flat-lining due to a number of poor indicators including significant property price falls in our two biggest cities. 

“Labor supposedly represents everyday Australians, yet the policy is likely to see the wealth of their constituents nose-dive even more because of the negative impact it will have on the market.” 

Mr Kingsley told WILLIAMS MEDIA there was "too much at stake" to keep the public in the dark.

“The majority of every Australian’s wealth is in their property so having the threat of their home’s value falling even further is no doubt part of the reason why our economy is in the doldrums,” he said. 

“It’s clear that people are fearful about these dangerous changes – both property owners and investors alike – so if Federal Labor is thinking about introducing these measures as early as July this year, buyers need to have enough time to organise their finances and come to the market in the next few months to meet this deadline. 

“With Labor tipped to win the Federal Election, the uncertainty is affecting the Australian property market and the broader economy, which is why Bill Shorten should announce the party’s intentions today – there is no reason not to tell us their plans as the policy was formulated years ago.” 

Real Estate Institute of Australia (REIA) President Adrian Kelly told WILLIAMS MEDIA all Australians need to know what the ALP's plans for property taxation are if elected.

"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. 

Related reading:

Renters will be victims of negative gearing reforms, says REIA

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

Negative gearing rumblings gaining in volume