The property industry has welcomed the ALP announcement that it will not change the rules on negative gearing and capital gains tax.

The Federal Shadow Cabinet has committed to maintain the existing arrangements, after Labor’s policy to scrap negative gearing and raise CGT was a major issue at the past two Federal Elections.

Opposition Leader Anthony Albanese says the commitment will provide “certainty and clarity to Australian working families”.

The Property Council has welcomed the move, noting that previous policies would have hurt the economy, cost jobs and had little impact on affordability. Master Builders CEO Denita Wawn says the move is good news for the building industry, the economy and the community.

Modelling by Deloitte Access Economics found Labor’s previous policy would have reduced GDP by $1.5 billion, shrunk the construction sector by $766 million and failed to improve affordability.