Michael Sukkar MP

LABOR’S HOUSING TAX GRAB ANOTHER PLAN TO MAKE AUSTRALIANS POORER

THE HON ANGUS TAYLOR MP
Shadow Treasurer

THE HON MICHAEL SUKKAR MP
Shadow Minister for Social Services
Shadow Minister for NDIS
Shadow Minister for Housing
Shadow Minister for Homelessness

THE HON LUKE HOWARTH MP
Shadow Assistant Treasurer
Shadow Minister for Financial Services

SENATOR ANDREW BRAGG
Shadow Assistant Minister for Home Ownership

JOINT MEDIA RELEASE

25 September 2024

LABOR’S HOUSING TAX GRAB ANOTHER PLAN TO MAKE AUSTRALIANS POORER

Labor’s secret plans to increase the costs of owning or leasing a home are proof that Labor is at war with homeowners and renters.

Media reports today that Labor is modelling changes to capital gains tax and negative gearing concessions prove that Labor is at war with the dream of home ownership.

This is a betrayal from a Prime Minister who has broken every promise on tax he made at the last election.

Australians are already paying a high price for Labor’s economic mismanagement. Mortgage holders are already up to $35,000 worse off under Labor.

Now 2.4 million Australians claiming rental deductions are next in Labor’s tax hit list.

A housing tax will only increase the price of housing and reduce supply, at a time when it is unaffordable and out of reach for too many Australians.

The only way to solve Labor’s housing crisis is to build more houses and tilt the scales in favour of first home buyers, because we already know that the only policies supporting first home buyers are the ones Labor inherited from the former Coalition government.

According to modelling prepared by Cadence Economics for Master Builders Australia, Labor’s last negative gearing and capital gains attack would mean:

• Up to 42,000 less new dwellings being built across the country.

• Up to 32,000 less full time jobs.

• Up to $11.8 billion less building activity

This will lead to less supply, and more expensive housing – a fact that has been repeatedly conceded by senior Labor figures:

• Anthony Albanese has previously said changes to negative gearing “won’t mean house prices fall.” (Anthony Albanese MP, Sky Australian Agenda, 29/05/16)

• ALP President Wayne Swan has previously said that it was “economically disastrous to do anything on negative gearing … It’s not assisted by pulling further investment and new housing out of the market.” (Wayne Swan MP, ABC 774, 03/05/10)

• Labor Minister Chris Bowen said changes to negative gearing and capital gains would only have a “modest” impact on housing supply and cost and rejected that changes “would massively reduce house prices.”  (Chris Bowen, ABC Weekend Breakfast, 13/04/19)

This is a tax grab from a government that has run out of money to fuel its inflationary spending.

Labor has already broken every promise it made on tax at the last election. Since the last election, Australians are paying the price for Labor’s tax policies that wage war on aspiration:

• Labor’s Retirement Wealth Tax: Labor’s broken promise to levy an unindexed wealth tax on Australians superannuation savings. Treasury analysis shows an average 21 year old will ultimately be hit by Labor’s unindexed wealth tax.

• Labor’s Bracket Creep Tax: Labor’s broken promise on the stage 3 tax cuts entrenches bracket creep and will increase income taxes on Australian families by $28 billion.

• Labor’s Franking Credits Clawback: Labor is targeting a $1.5 billion hit on franking credits through tax and regulatory changes;

• Labor’s Tax Hit On Small Business: Labor voted eight times against bigger tax cuts for small business, and have wound back tax incentives to support small businesses to innovate, grow and invest.

At a time when inflation is taxing Australians’ household budgets, Labor’s only economic plan is to add to that cost with higher taxes.

A Dutton Coalition government will deliver lower, simpler, fairer taxes that support aspiration, home ownership, and small businesses – allowing Australians to keep more of what they earn.

ENDS