New independent analysis has added qualitative proof to claims the Labor Party relied on incorrect assumptions in formulating its negative gearing policy.

The figures by MCG Quantity Surveyors show Labor’s assertions on the percentage of investors buying new homes were grossly understated, calling into question their revenue projections.

It describes Labor’s assessment as “woefully inaccurate”.

“Shadow treasurer Chris Bowen has suggested new-buy investors comprised anywhere between 4% and 14% of the cohort, but our figures suggest this is patently wrong with the number actually over 40%,” says Mike Mortlock, managing director of MCG.

“Labor’s based much of their projected Budget revenue on the premise investors will move ‘en masse’ from buying existing property to new holdings due to its negative gearing changes,” he says. “But our figures show investors are already buying new.”