Australia’s property sector has welcomed the Coalition’s federal election victory, saying that Australians had rejected ‘risky’ changes to the taxation of property investment.
In a statement, Property Council of Australia Chief Executive Officer Ken Morrison congratulated the Coalition on their victory.
“This is an extraordinary electoral victory for the Government and we congratulate the Prime Minister and his colleagues for securing another term of office,” Morrison said.
“While we don’t yet know if the Coalition will have a majority in the Parliament, it’s clear that they will be able to form government and we trust deliver stable government throughout the next parliamentary term.”
Morrison said Australians have rejected Labor’s planned changes to negative gearing and capital gains tax.
“A key plank of the Opposition’s policy agenda were big changes to negative gearing and big increases to capital gains tax, and the election result can only be seen as a repudiation of this policy …,” he said.
“… Negative gearing has been a long-established feature of the Australian tax system and supports 1.3 million Australian property investors, the overwhelming majority of whom are everyday Australians saving for their future.
“These investors also support the housing choices for the one-third of Australian households who rent their home.
“Australians have sent a clear message to all of our parties to leave negative gearing and capital gains tax alone.”
Morrison’s comments follow the Coalition’s victory in Saturday’s election.
As things stand, the Coalition has secured 74 of the 76 seats needed for a majority in the House of Representatives and to form the next government.
Labor has 65 seats whilst the Greens have one and independents have five.
Six seats remain in doubt.
Labor leader Bill Shorten has stood down, declaring that he would not stand for re-election in his party’s next leadership ballot.
The Coalition’s win is welcome for the property sector amid fears that Labor plans to restrict negative gearing to new dwellings and to halve the capital gains tax discount would dent investor confidence and demand for property.
Many in construction were also concerned about Labor plans to abolish the Australian Building and Construction Commission – a move some feared would lead to more illegal union activity on building sites.
Morrison said the Property Council looked forward to working with the re-elected government.
In particular, he welcomed the Coalition’s promised help to new home buyers along with its planned infrastructure investment.
Despite opposing several Labor policies, Morrison thanked Shorten and his colleagues for their engagement with the property sector.