Federal property tax changes are projected to reduce Australia’s household wealth by A$1.3 trillion over the next two years, according to Primara Research modelling based on ANZ’s forecast of a 10 per cent property price fall, reported by 7NEWS. The modelling ties the projected wealth hit to the government’s negative-gearing and capital-gains-tax reforms.
The reforms have already led some investors to leave the market, the report says, which is reducing the pool of rental properties and pushing up rents. First-home buyers are described as hesitant to enter the market over concerns about negative equity, with the 5 per cent deposit scheme — designed to lower the entry barrier — leaving buyers more exposed in a declining price environment.
References
7NEWS – Property tax changes to slash $1.3 trillion from Australian wealth
