Real Estate Institute of Australia (REIA) has welcomed the Leader of the Opposition’s announcement that they will support the status quo for negative gearing and capital gains tax should they form government.

REIA President, Adrian Kelly said that households and small businesses need certainty as 12 million Australians remain in lockdown.

“Many mum-and-dad investors have borne the brunt of the rental eviction moratoriums and stepped up to provide social and affordable housing through this period.

“The vast majority of property investors are everyday Australians looking to provide for their own retirements and are instrumental in providing the rental accommodation that is needed by the one-third of households who lease their home. 

“ATO data shows that 71 per cent of investors own just one investment property and 19 per cent own two, while 47 per cent of investors are women.

“Continuing to support successful tax settings that encourage investment is most welcome in a time of great uncertainty.

“We also do not want CGT to become overly punitive and disincentivise and discourage households from rightsizing. This will particularly be the case as Australia’s population ages.

“We thank the Opposition for taking on board the advice of the real estate industry as practitioners working at the coalface of property markets,” he said.

Mr Kelly also welcomed the Oppositions commitment to provide bi-partisan support of legislated tax cuts which puts more money back into hip-pockets and the economy.

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