The Property Investors Council of Australia (PICA) said further evidence proving the use of ‘dodgy data’ shows Labor must urgently authorise the Parliamentary Budget Office to release modelling and assumptions used in their negative gearing and capital gains tax policies.
“If Labor has nothing to hide, then this is a straight forward exercise in full disclosure so all property owners can understand their reasoning for such significant reform,” said PICA chairman, Ben Kingsley.
Mr. Kingsley said Labor’s keystone policy failed to include off-the-plan and house-and-land packages in its estimation that more than 90 per cent of new investment loans is to people purchasing existing housing stock.
He said industry experts have shown this figure to be woefully inaccurate.
“Just today Australia biggest aggregator – AFG with over 2900 mortgage brokers – confirmed its mortgage application data for new investment purchases vs. existing property was 43% new and 57% existing,” he said.
“This seriously puts into question Labor’s logic in crafting the policy and absolutely challenges their revenue assumptions.”
Mr. Kingsley said Labor’s policies are poised to significantly disrupt the property market, and if they won’t deliver on the party’s stated goals because of inaccurate data, action must be taken now. “We need to address this immediately, as it very much in the interest of the 10-million plus property owners that are going to see the values of their property fall to pieces across Australia.”