Sarah Henderson (Corangamite, Liberal Party) Share this | Link to this | Hansard source

Like Labor's failed mining tax and carbon tax, Labor's abolition of negative gearing on all existing residential property and massive hike in capital gains tax are more policy on the run. These are reckless and ill-considered changes which will have a very detrimental impact on the price of what is ordinarily our most precious asset. Taking one-third of buyers, the investors, from the market will drive down prices for established homes. In Corangamite I have spoken to a number of local real estate agents who shake their heads in disbelief and say this would be a disaster for the residential property market. According to Henry Ergas in today's Australian, in a column entitled 'Labor must stop denying negative gearing truth', the ALP will engineer a weaker housing market as well as increase the burden on tenants. The Property Council of Australia says: 'The changes Labor is proposing won't just hurt mum and dad investors but also risks hurting one of the few industries, the property industry, that is helping our economy grow. We support tax reform, but reform needs to be used to drive economic growth. Changes to negative gearing will do the opposite.'

In Corangamite there are 7,280 people who negatively gear. This is policy on the run. If implemented, it will damage the value of all existing homes.