Negative gearing changes off the table for May's budget
THE Federal Government's announcement that it will not change negative gearing or capital gains tax policy has been given the stamp of approval from property and builders' groups.
Prime Minister Malcolm Turnbull and Treasurer Scott Morrison announced on Sunday they would not change the tax policy heading into next month's budget.
The Property Council of Australia said the government's announcement was good news for Australia's two million investment property owners.
The council's chief executive, Ken Morrison, said the decision was economically responsible and recognised the important role property was playing in Australia's economy.
Master Builders also backed the Government's announcement.
"Negative gearing underpins investment, largely by mums and dads, in private rental properties and plays a critical role by supplementing the shortage in public and social housing rental stock where there is a waiting list estimated to be around 200,000 households," Master Builders chief executive Wilhelm Harnisch said.
Shadow treasurer Chris Bowen slammed the Government's announcement, saying the Prime Minister did not care about housing affordability.
"He thinks it's more important for an Australian buying their 10th or 11th property to get a tax break than it is for first-home buyers to get into the housing market," Mr Bowen said.
Mr Turnbull said the tax policies were an issue of common sense.
He said about a third of buyers in the residential property market were investors.
"We believe that the future of our economic growth and the jobs of our children and grandchildren depend on more investment, more entrepreneurship," Mr Turnbull said.
"This is a supply and demand problem. There has not been enough supply."