• Federal Labor’s proposed new rental policy short-sighted

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    Federal Labor’s plan to introduce a new rental policy if elected, not only conflicts with their stance on negative gearing, but will be a drop in the ocean when it comes to tackling housing affordability.

    REIWA President Damian Collins questioned the logic behind the decision to offer tax incentives to a very small minority of property investors while at the same time disincentivising the vast majority.

    “Why are Labor offering rent tax offsets to people who offer new properties for rent at 20 per cent below market value? Because they know their plans to introduce a new negative gearing policy for new-builds only will increase rents, as investors retreat from the market in established areas,” Mr Collins said.

    The proposed policy, which was laid out by the Federal Labor party yesterday, includes a 10-year plan to build 250,000 new homes across the country over the next decade, including 20,000 during its first term, should they be elected to Government.

    “However just like the failed NRAS scheme, this will barely scratch the surface in tackling housing affordability” Mr Collins said.

    “Building 20,000 new homes in the first three years is less than one per cent of the supply of rental properties. Rents are still going to rise. It’s simple supply and demand.

    “Federal Labor’s eagerness to tinker with negative gearing will have far-reaching consequences for the Australian housing market, and this proposed new scheme will not even come close to mitigating the inevitable fall-out.”

    Find out more about REIWA's stance on negative gearing.