ALP policy fail
A long time since I did CoSec type stuff, granted, but is 'perfect storm' the appropriate header for a profit downgrade?
Who knows!
But builder Tamawood (ASX: TMD) cited the ALP's proposed changes to negative gearing and capital gains tax as a key factor in its dejected FY19 downgrade today.
This pretty much says it all about Labor's flaky claims that their policies would stimulate construction (the McKell Institute even tried to argue that the policies could create extra construction jobs!).
If that were the case then builders and developers would be all in favour and practically falling over themselves to get new residential projects lined up for the years ahead.
But of course they are doing the opposite, because investors are all-too-keenly aware of the two-tier market that would be created between new and established properties, practically guaranteeing losses on the resale of new apartments under the ALP's proposals.
Via the Securities Exchange newswires:
Source: ASX
Indeed Tamawood's Chairman noted that conditions could be worse than the financial crisis, in part due to difficulties in obtaining finance under tighter credit conditions.
The release wrapped up with a 'double tap' at Labor's policy platform:
Source: ASX
One for the 'Sherlock files'.
