By: Staff Reporter
The federal government’s response to the release of the Henry Tax Review has been broadly welcomed by several real estate industry bodies.
The Housing Industry Association (HIA) welcomed the broad based fundamentals underpinning the federal government’s response to the Henry Tax Review, with managing director Shane Goodwin stating that the Review had opened the door to a “much needed housing supply and affordability reform agenda”.
“The reforms announced today recognise the taxation and red tape impediments that have hindered small business for too long. In particular, the new system of tax write off is welcomed,” Mr Goodwin said.
But while Mr Goodwin said the government’s response had targeted some of the issues mentioned in the Henry Tax Review, there were still a lot of issues that were going unaddressed.
“The Henry Report makes recommendations on land tax, stamp duty, negative gearing and capital gains tax that have not been addressed in the Government’s response. Dr Henry recognises that action is firstly needed to improve housing supply to avoid a further deterioration in rental stock. Dr Henry appropriately highlights the impact of infrastructure charges on new housing supply and affordability,” Mr Goodwin said.
“The Government’s response still leaves many of the issues affecting residential properties unresolved. The Government’s response requires clarification so as to put the question of property tax treatment to bed, raising confidence in residential investment.”
“Looking ahead, it is critically important that we now focus on delivering the necessary housing to meet our current and future needs. The Government needs a structured process for dealing with a host of reform options canvassed in the Review. HIA stands ready to work with the Federal Government to reform land zoning and building planning processes, infrastructure taxes and charges, and procedural delays.”
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