United front to oppose Labor's Negative Gearing Policy

The peak bodies representing Australia’s real estate industry have banded together to launch a million dollar campaign aimed at attacking Labor’s negative gearing plan.

The website - negativegearingaffectsyou.com - claims a plan to scrap negative gearing would be ‘a disaster for our fragile economy’ as it will rip $19 billion out of the economy, therefore resulting in ‘dire consequences’ for every Australian - not just the ‘rich’.

Backed by the Real Estate Institute of Australia, its state bodies, and 20 of the country’s most influential real estate agencies, the site aims to dispel myths surrounding negative gearing and work to educate the public about the need for a comprehensive housing approach.

“This policy – if ever adopted – directly affects the millions of Australians who own any property, whether it’s an investment or their own home. It also affects the 18 million Australians who have a stake in property through their superannuation funds,” explains the website.

“But as well as falling house prices, the knock-on effects will see jobs destroyed and government revenues fall, and may even send the Australian economy into recession.

Shadow Minister for Infrastructure, Anthony Albanese says he expects “vested interest to go out there and campaign in their own interest.”

He also says he isn’t concerned by the campaign, which is expected to be similar to the mining industry’s anti-tax campaign in 2010.

The Federal Opposition says it’s about ‘making housing more affordable in Australia’ by ‘levelling the playing field for first home buyers competing with investors’.

Labor is basing its policy on statistics that show just 1 out of 7 home purchasers are made by first home buyers.

The Negative Gearing Affects You website will be distributed through each body and agency’s extensive mailing list, and will coincide with a series of advertisements that will run in the lead up to the July 2 election.

And although the REIA claims it is a ‘politically non-aligned organisation’ it admits at “this time, the issue is far too important not to speak out.”