Hastings Construction Industry Association represents local housing and construction businesses including builders, tradesmen, civil contractors, engineers, surveyors and town planners.
In the Port Macquarie area the housing industry employs about 3,000 people directly and generates $1.5 billion or one third of the Gross Regional Product annually. The industry also supports many other related businesses and suppliers indirectly.
HCIA opposes and warns against the proposed Labor policy to abolish negative gearing for established rental properties and halve capital gains tax concessions.
This policy combination will have a significant detrimental impact on the housing industry putting jobs and our local economy at risk.
Industry experts such as Housing Industry Australia (HIA), Master Builders Australia (MBA), Urban Development Institute Australia (UDIA), Deloittes, Access Economics and Centre for international Economics among many others have all assessed that the combined policies will be detrimental to Australia's housing industry and the economy overall.
HCIA is warning that the combined policy proposal will:
- Lower all property values thus reducing the main asset value of most people,
- Increase rental costs for those trying to save up a deposit,
- Decrease housing Construction activity resulting in fewer trade related jobs, and
- Force local investors out of the housing market which in turn lowers economic activity and job opportunities
A Report by MBA estimates that if these policies are implemented the impact across the country would be:
- Up to 42,000 less new dwellings being built
- Up to 32,000 less fulltime jobs
- Up to $11.8 billion less building activity
- Up to 210 million less renovation activity
HCIA opposes the policies and warns against them because of the threat to local jobs and potential damage to the economy in our region which will ultimately hurt all businesses and the community.