Amidst rumours regarding raising the capital gains tax, the Property Council of Australia has warned the Government to proceed with caution and carefully consider the long-term consequences of such harsh reforms. Such actions discourage investors and damage confidence, a potentially disastrous combination during a time when Australia needs to invest in new residential developments to accommodate the increasing population.
The Property Council also submitted:
- adjusting the discount may have undesirable repercussions: potentially inflating housing prices, constricting housing supply, and threatening the livelihoods and financial security of those who work in the industry, particularly in construction.
- while the property sector remains sympathetic to the fact that maintaining Australia’s AAA rating and regulating the Budget is essential, this should not be done at the expense of the housing industry and those who depend on it.