Negative gearing changes off the table as Morrison holds government

Mr Morrison holding power means the Labor Party’s plans to limit negative gearing to new housing from 1 January 2020 will not go ahead.

The same applies to Labor’s proposal to reduce the capital gains tax discount from assets held longer than 12 months from 50 per cent to 25 per cent, which will now not see the light of day.

What will go ahead under a Liberal government in terms of property policy is a boost for first home buyers, which Mr Morrison announced last weekend.

The Liberal government will allow first home buyers to purchase property with a 5 per cent deposit. This means some lenders will provide loans on a 95 per cent loan-to-value ratio.

The First Home Loan Deposit Scheme will be available through private lenders and small lenders, which Mr Morrison said is a bid to ensure competition on price for Australian borrowers.

Property investors should also keep an eye on where the billions promised in infrastructure spend is distributed, which may present growth opportunities in suburbs and regions which get a funding injection. 

The Morrison government has announced $100 billion in infrastructure spend over the next 10 years, which is about $25 billion more than current levels.