Bill Shorten and Labor’s Housing Tax policies may cause our thriving economy to trip into a recession, experts have warned.
Analysis released yesterday by SQM Research projected that, should Labor implement their risky Housing Tax policy, already falling house prices could tumble by up to a further 7 per cent in the first year from Labor’s negative gearing and capital gains tax policy alone.
SQM Research director Louis Christopher predicted that with the housing market already cooling, Labor’s Housing Tax policy could trip our strong economy to fall into recession.
In contrast, our plan for a strong economy is working. We are on track to deliver a surplus in 2019-20. The deficit is the smallest it has been in a decade at $10.1 billion. The economy has created more than 1 million jobs since we came to Government thanks to strong economic policy. And our AAA credit rating has been affirmed by leading international creditors.
Not only is Labor’s policy risking a recession, but Standard & Poor’s has warned “Australia’s AAA credit rating would come under pressure if house prices fall sharply and increase risks to fiscal accounts, real economic growth and financial stability.” Labor is a risk to Australian jobs and our economy.
Cautioning of a recession and losing our AAA credit rating comes on the back of a long list of experts, including UBS, Morgan Stanley, HIA, MBA, researchers from UNSW, the Property Council of Australia, and the Real Estate Institute of NSW, warning there will be negative impacts for Australians and our economy if this destructive policy is introduced.
Labor’s blatant attempt to disguise this tax grab as a genuine policy to improve housing affordability has never been more transparent.
Labor can’t tell us how much rents will be impacted. Modelling from the Centre for International Economics, (commissioned by the Housing Industry Association) confirms this policy will force rents up – a direct hit on young Australians saving for their first home.
Independent analyses have time and again shown us scrapping negative gearing will have negative impacts. The SQM modelling has confirmed the conclusion of RiskWise analysis – house prices will fall. A direct hit on Australian home owners.
Labor demonises negative gearing as a policy that benefits the well off, when almost two thirds of those who utilise negative gearing have taxable incomes of $80,000 or less.
These policies hurt Australians who are trying to get ahead.
Labor’s attempts to hide the impact of this disastrous Housing Tax are getting less credible by the day.