In the period after the federal election we saw a welcome jump in sentiment across the property industry.
This reflected some positive news on interest rates, lending standards and the Government’s plan to introduce a low deposit loan scheme for first home buyers.
The end of uncertainty about changes to negative gearing and capital gains tax under a Labor government was undoubtedly also a factor in the sentiment shift.
While the election result means that these policies will not be implemented now, it is important that the consequences of such decisions are well understood so that these do not form part of a future government’s mandate.
We have released our economic modelling of Labor’s proposed policy change, as well as our survey of voters in marginal electorates. You can read more about both reports in this issue of Property Australia.
The plan was a policy and political failure for Labor, and as the party goes through its post-election policy review, we’ve been drawing on these findings to make the case for the policy to be dumped for once and all.
Of course, that doesn’t relieve the Government of the responsibility to also deliver good policy that supports confidence and drives investment.
As our latest Office Market Report shows, the softening demand for office space is a clear sign of a slowing Australian economy and should be a call to action for policy-makers in Canberra to get behind policies that promote growth, jobs and investment.