THE Property Council of Australia has blasted the Greens for claiming the abandonment of negative gearing would save the Government billions of dollars and bring down house prices.
Greens Senator Scott Ludlum released Parliamentary Budget Office modelling which showed the move would save the Federal Government $3 billion in four years and increase revenue by $42.5 billion by 2024-2025.
Mr Ludlum said the $3-billion windfall could be spent to fight rising home prices and providing homeless accommodation.
But Property Council of Australia CEO Ken Morrison said scrapping negative gearing would have the opposite effect.
"Removing negative gearing would put the brakes on the supply of new housing and any interruption to supply would only drive prices higher for both renters and homeowners," he said.
"It would mean less rental accommodation and less newly constructed housing, which our major cities desperately need."- APN NEWSDESK