Advertisement
Australia’s largest real estate group, Ray White, has issued a stern warning that proposed changes to negative gearing and the capital gains tax (CGT) discount would trigger a major shock to the rental market.
Ray White managing director Dan White and chief economist Nerida Conisbee told 10,500 members that the federal government is considering reducing or removing the 50% CGT discount for property investors who buy established homes.
They argue that the proposed changes would slash investor demand, shrink rental supply, and push rents sharply higher for the 2.9 million tenant households.
The full text of this article is available to MacroBusiness subscribers
Cancel at any time through our billing provider, Stripe
About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.