Real estate industry unites against Labor’s negative gearing plan

The real estate industry is set to launch a multi-million dollar campaign against Labor’s policy to curb negative gearing.

This morning Anthony Albanese shrugged off news the real estate industry is launching a campaign to attack Labor’s negative gearing plan.

The campaign is expected to be similar to the mining industry’s anti-tax campaign, which contributed to the demise of Kevin Rudd in 2010.

CEOs from more than 20 of the country’s largest real estate agencies are meeting today to plan the potentially multi-million dollar campaign. It is expected that families, renters, and homeowners will be targeted in a direct mail and email campaign.

Real estate agents have slammed Labor’s proposal, saying it could send the economy into a recession.

LJ Hooker CEO Grant Harrod told The Daily Telegraph prices could initially rise if Labor’s policy was introduced. “Contrary to what the opposition may think, abolishing negative gearing would likely create panic purchasing, with a rush of investors buying up existing properties in the six months before changes are implemented.”

He said he was also concerned for renters. “We also know that about 30% of our investors would sell if negative gearing was abolished or restricted, so we’re concerned for tenants.”

Anthony Albanese said his party is not concerned about a campaign against their negative gearing proposal.

On the Today show he said, “We expect vested interest to go out there and campaign in their own interest.”

“The Reserve Bank of Australia in their memo this week effectively endorsed our policy,” he said, although the Treasurer Scott Morrison said earlier in the week the RBA’s note it out of date. The note was written two years ago, when both the real estate market and the economy were experiencing more robust conditions.

Coalition MP Christopher Pyne also told the Today show that Albanese was confusing voters. He said, “When we put that very question to him about pushing down housing prices and pushing up new prices and increasing rents, he said it won’t do any of those things because it had nothing to do with housing affordability… Today he’s saying the opposite!”