After Kelly O’Dwyer departed from script yesterday and warned that Labor’s proposed changes to negative gearing and the CGT discount would “increase the cost of housing for all Australians”, she released the below press release back-tracking on her comments:
Here’s a question for Ms O’Dwyer: why is foreign investment in new dwellings encouraged by the Government because it boosts dwelling construction and jobs, and helps grow the economy, but Labor’s property tax policy – which would achieve exactly the same result – “reckless”?
If you are not sure what I am referring to, Ms O’Dwyer, here is your own justification of the foreign ownership regime:
Currently the framework seeks to channel foreign investment in residential real estate into new dwellings in order to increase the housing stock for Australians to build, buy or rent. Foreign investment is encouraged in new dwellings whether they be apartments, units or homes because in addition to creating more supply, it also creates more jobs for the building and construction sector – all of which helps to grow our economy.
Non resident foreign investors, while they can purchase new dwellings cannot generally purchase existing dwellings. Applications to purchase new dwellings are therefore generally granted, while applications to purchase existing homes are only granted if the purchaser is a temporary resident.
Clearly, Ms O’Dwyer’s opposition to Labor’s plan is full of contradictions and flies in the face of her stance on foreign investment.
This suggests that her position has been made on the run for political purposes rather than sound policy judgements.
unconventionaleconomist@hotmail.com
