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Property tax changes will reduce housing construction
Property tax changes set to decrease housing construction, increase rents and lower GDP by $1bn over four years
Property tax changes set to decrease housing construction, increase rents and lower GDP by $1bn over four years
– Federal budget property tax changes may reduce housing construction and GDP by $1 billion in four years.
– Property bodies warn rents could rise by $10 weekly, exceeding Treasurer Chalmers’ estimate.
Housing construction impact
The updated analysis highlights that the Albanese government’s ban on self-managed super funds borrowing to purchase property, along with negative gearing and capital gains tax changes, may result in 10,700 fewer homes being built by 2029-30.
When delivering the budget in May, the Treasurer stated that these changes would encourage investors to focus on newly built stock as access to negative gearing would be limited to new builds.
The modelling was commissioned by the Real Estate Institute of Australia, the Property Council of Australia, Master Builders Australia, and the Housing Industry Association.
Budget deal analysis
These organisations believe that the disincentives are further intensified by the Albanese government’s agreement with the Greens to pass the budget.
The implications of these changes could stress the housing market further, as industry experts indicate a potential slowdown in construction activity.
Stakeholders are closely monitoring the situation as the economic landscape shifts under the new regulations.
The long-term effects on affordability and availability of housing will likely be significant if current trends continue.
