On top of the Albanese Government’s unflagged changes to negative gearing, capital gains and self managed super funds, Property Council CEO Mike Zorbas said impending double taxation of discretionary trusts was a housing supply blunder of undeniable proportions that will impact buyers and renters in every state and territory.
Statement attributable to Mr Zorbas:
“It’s odd to hear the Federal Treasurer giving himself a Friday afternoon pat on the back in the CFFR productivity communique when industry has been patiently asking for many of these changes for years and they have been overshadowed by four straight federal budget housing supply hits.
The Albanese government has lost sight of a truth they once understood. Creating the right investment conditions for a radical boost in new home supply is the only responsible, long-term housing affordability solution for our growing population.
Double taxing trusts, the latest of the Albanese Government’s four budget tax hikes, will bloat housing costs for buyers and renters.
The proposed trust taxes will weaken the small and medium sized organisations that Australia relies on to turn land, approvals and infrastructure into the communities, seniors and student accommodation, warehouses and commercial assets our growing cities need.
On top of Federal CGT, Negative Gearing and SMSF changes, new trust tax hikes will add to the confidence vacuum that banks tell us could take house prices down 15 per cent and, during that time, will directly jeopardise new project supply.
It is no longer believable for the Prime Minister to deny these tax hikes will permanently kneecap the National Cabinet’s target of 1.2 million well located homes by 2029. His own Treasury says the hit is 35,000 homes.
Hopefully at least one State Treasurer had the guts today to privately remind the Federal Treasurer that these spiralling tax hikes will guarantee we fail our housing supply targets and the Accord.
Scrap these latest tax hikes on discretionary trusts, bin this red tape and put national housing supply back on track.”
