But Mr Symond's recent statements conflict with what he said during an appearance on the ABC's Q&A program on November 11, 2013. Aussie Home Loans tycoon John Symond is warning of economic 'Armageddon' if a Labor government overhauls negative gearing. Credit:Louie Douvis "Negative gearing does need to be looked at in the tax system because I don't think it's fair at the moment . It leans very heavily to the high income earners and that needs to be brought into line, as is hundreds of other aspects of the tax system," he said. "Negative gearing wasn't designed for people who can afford to go and buy $1 million, $2 million, $3 million houses or apartments for negative gearing to offset the bulk of their interest payments off their tax," he said. The panel was responding to a video question from Leanne Murphy from Balcatta in Western Australia, who described herself as a "single parent, struggling to make ends meet but really looking forward to the day when I might be able to once again own my own home".

"Do you think negative gearing should be abolished or at least quarantined, only available for new dwellings, and thus giving low income earners the opportunity to get into the property market?" she asked. Labor's proposal is to restrict negative gearing to new-built properties to encourage investment in added housing supply. On the same program, Graham Bradley, the chairman of Stockland, Australia's biggest residential property developer, also agreed with Leanne's question. "If it were devoted to new property development, to creation of new housing, it would actually go to relieve the shortage of housing and I can really sympathise with Leanne," he said. Last week Mark Steinert, the current chief executive of Stockland, claimed Labor's policy has "the potential to destabilise the entire economy" – to the extent of "risking a recession".



During the 2013 Q&A program, Mr Symond argued for expanding the housing stock through land releases in the eastern states and reduced taxes and charges on subdivisions.

Mr Symond told 2GB last week that real estate prices could fall by up to 20 per cent if Labor got into power. On Sunday, he went further and raised the prospect of recession. "It is frightening and it will frighten others . . . and it creates this stampede. And that's my concern that there could be a glut of properties come on the market, force the prices down, and then all of a sudden it could be Armageddon with the housing industry that's propped up the Australian economy the last four years," he told Seven's Sunrise program. On Monday, Mr Turnbull was asked about Mr Symond's apparent backflip but he again went on the attack against Labor's policy. "What Shorten is proposing on negative gearing is a policy as John Symonds has said, as the real estate industry have said .... will smash the value of properties and it will drive up rent. It will drive up rent," he said.



"The extraordinary thing about the Labor Party is that they ignore experience. They are going to go back and make the same mis take on negative gearing that [former prime minister Paul] Keating did which he had to reverse."

Mr Shorten has accused Mr Symond, whose firm has donated $450,000 to the Coalition over the past decade, compared to $20,000 to the ALP, of doing Turnbull's bidding in the tight election contest. Mr Symond made similar comments against supporting high income earners through negative gearing in February last year but did warn against creating any shock to "The intention of negative gearing when it was introduced was not to facilitate a $10 million- $20m house to rent out, get a 2 per cent yield and write the rest off on negative gearing. It needs tweaking on capping the benefits," he told The Australian. "The downside with messing with negative gearing is that it would stifle investor appetite and there would be an even bigger problem in the supply of housing. The lack of an orderly supply strategy for housing has brought on price increases in cities like Sydney." Tim Allerton, Mr Symond's media spokesman said he had no further comment on the subject of negative gearing.