“Federal Labor’s plan is good for the budget, good for housing construction jobs and fair for first home buyers.”
Labor took the negative gearing policy to the 2016 election and has resisted pressure to scale back the changes amid a downturn in the Australian property market.
The Morrison government plans to make the policy a focus of the federal election, which is expected to be called in less than two weeks.
Labor on Friday also announced it would cut the managed investment trust withholding rate in half, from 30 per cent to 15 per cent, to encourage new housing.
The Property Council of Australia said it remains strongly opposed to the tax overhaul.
“And deeply concerned with its potential impacts on housing markets and the broader economy at this uncertain time in the cycle,” the group said in a statement.
“In particular, we are concerned with the impact of these tax changes on new housing construction.”
A recent survey commissioned by the Property Council found the policy won’t stimulate new housing construction as hoped.
Labor’s plans to increase capital gains tax and limit negative gearing will hit the nation’s wealthiest and largely Liberal-held electorates, sparing those in low income rural areas or comfortably held by the ALP.
A special breakdown of Tax Office data covering average negative gearing losses and the average capital gains discount enjoyed by taxpayers shows Labor’s policies will hit hardest voters in areas least likely to back the ALP at this year’s election.