Falling property prices.
Diminished state revenues.
These are the concerns that three state treasurers have aired in a letter to Opposition Leader Bill Shorten regarding Labor’s economic policies.
The state government treasures from SA, NSW and Tasmania want Shorten to unveil what they believe is the actual impact of his election policies, the Australian Associated Press report.
The want guarantees that their states will be reimbursed for any loss of revenue form the GST.
Letter demands response from Shorten
According to AAP, in a letter, SA’s Rob Lucas, NSW’s Dominic Perrottet and Tasmania’s Peter Gutwein stated that the policy to decrease access to negative gearing and to lower the capital gains tax discount had the ‘potential to further slow the housing market, which will have significant implications for our constituents and also our local economies.’
‘The Reserve Bank has observed that the substantial softening of the housing market appears to have already had a negative economic effect on consumer spending, hampering economic growth and reducing revenue forecasts at the state and federal levels…
‘We are aware that your policies are likely to place further downward pressure on property values, directly affecting homeowners and those working in the construction industry, while also giving rise to broader negative economic consequences that threaten to undermine the jobs and living standards of all Australians.
‘We write to seek your urgent advice on the impact of your policies on home values, rents, the construction industry, the economy, wages and jobs.’
Lucas also stated that Shorten needed to ‘come clean about the true impact of his destructive economic policies’.
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