The Assistant Minister to the Treasurer has slammed Labor’s proposed housing tax, saying it would put a sledgehammer on an already cooling property market.

Another independent research report has found Labor’s plan to end negative gearing and double capital gains tax would see the value of home assets plummet by up to 12% a year.

Rental prices would be forced up and housing construction would slow, according to the report.

This has Michael Sukkar calling the move a “dog of a proposal.” He says it has been calibrated to generate tax revenue for Labor’s excessive spending.

“One report after another highlights exactly what the Treasurer and I have been saying ever since Labor announced this policy.”

“You need to attack housing affordability with a scalpel, not an axe.”

“If you enact Labor’s policy, you really risk taking a sledgehammer to the market.”

Sukkar says the skyrocketing prices did warrant Canberra’s intervention, but thinks Labor has picked the wrong way to go about it.

“Never have I suggested there wasn’t an issue with the really rampant growth we’ve seen,” he says.

“But we always knew it was fixable. We encouraged and pushed and nudged it pretty strongly in the right direction by really tightening up on investors. Now that’s worked, it has had the desired outcome.”

 “You don’t make a permanent change to hurt the housing market to address a short-term issue.”

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