Fears home values will fall, jobs could go and state revenue down as State Treasurers demand Shorten come clean on his destructive economic policies
Thursday, 9 May 2019
Australians face falling property prices, higher rents, potential job losses and reduced state revenue under Federal Labor’s ‘destructive’ economic agenda, with three State Treasurers joining forces to demand Bill Shorten reveal the true impact of his election policies on their states.
In a joint letter to Mr Shorten today, SA Treasurer Rob Lucas, New South Wales Treasurer Dominic Perrottet and Tasmanian Treasurer Peter Gutwein also sought assurances they would be compensated for any loss of GST revenue as a result of Labor’s tax policies – which independent analysts predict could be as high as $400 million a year.
They warned Labor’s policy to reduce access to negative gearing and to lower the capital gains tax discount had the ‘potential to further slow the housing market, which will have significant implications for our constituents and also our local economies’.
“The RBA has observed that the substantial softening of the housing market appears to have already had a negative economic effect on consumer spending, hampering economic growth and reducing revenue forecasts at the state and federal levels,” they wrote.
“We are aware that your policies are likely to place further downward pressure on property values, directly affecting home owners and those working in the construction industry, while also giving rise to broader negative economic consequences that threaten to undermine the jobs and living standards of all Australians.
“We write to seek your urgent advice on the impact of your policies on home values, rents, the construction industry, the economy, wages and jobs.”
Independent analysis of Labor’s changes to capital gains tax policy by the Centre for International Economics estimate that states will lose more than $1.4 billion a year – over $1 billion a year in state revenue and over $400 million a year in lost GST revenue.
Further analysis by SQM Research forecast Labor’s change to negative gearing policy will result in a $2.3 billion fall in stamp duty in one year alone.
“It’s time for Mr Shorten to come clean about the true impact of his destructive economic policies on the lives of Australians who, ultimately, will bear the brunt of falling house prices, slower wages and economic growth and reduced state revenue which dictates the level and quality of services the states can provide,’’ said Treasurer Lucas.