Housing escapes tax blitz

FEARS the Budget would include changes to negative gearing or capital gains tax have proved unfounded and Treasurer Scott Morrison has instead taken a largely handsoff approach to housing.

The lack of major property tax changes suggested the Government felt confident last year’s measures to crack down on investment activity and foreign spending had the desired effect of calming home prices, particularly in Sydney and Melbourne.

First homebuyer participation in the housing market, meanwhile, has reached a fiveyear high nationally.

By leaving the current property taxing system largely untouched, Mr Morrison has calmed the concerns of much of the real estate and development industry, who had feared the Government might cave into strong pressure to overhaul negative gearing.

Real Estate Institute of Australia president Malcolm Gunning said it represented an “ideal” outcome for the housing market.