Wrong: Opposition Leader’s claims on Master Builders housing tax modelling

Bill Shorten’s claims on the Today Show this morning about Master Builders’ modelling of Labor’s policy to increase capital gains tax and restrict negative gearing are wrong.

“Before relegating Master Builders to the ‘naughty corner’ the Opposition Leader should check his facts,” Denita Wawn, CEO of Master Builders Australia said.

“The Opposition Leader incorrectly claims that Master Builders Australia does not acknowledge that negative gearing would still be allowed on new homes under Labor’s policy to increase capital gains tax and restrict negative gearing,” she said.

“In fact our research modelled Labor’s policies to the letter. It finds that Labor’s policies to increase capital gains tax and restrict negative gearing to only new homes will result in up to 42,000 less new homes, up to 32,000 less jobs in the building industry and an $11.8 billion hit to the building industry,” Denita Wawn said.

“We totally agree with the Opposition Leader that building more new homes to increase housing supply is the only way to keep home ownership within reach of all Australians. That is why we are so concerned about the impact of Labor’s policies and why we continue to call on them to rethink them,” she said.

“Another reason for Labor to rethink its policies is that the forecast Budget Surplus of $7.1 billion in 2019/20 is more than Labor will recoup from increasing capital gains tax and restricting negative gearing,” Denita Wawn said.