Malcolm Turnbull says negative gearing will remain unchanged
Article by Kelly Emmerton
Good news for small-time property investors - the Prime Minister and Treasurer recently announced that the tax concessions concerning negative gearing would remain unchanged, reported the Housing Industry Association (HIA).
The HIA welcomed the news as positive for ‘mum and dad’ investors, with HIA Chief Executive of Industry Policy and Media, Graham Wolfe claiming, “negative gearing will support the delivery of a larger stock of rental accommodation, increasing access to shelter, while promoting wealth creation and self-sufficiency in retirement for hundreds of thousands.”
These claims were made after research conducted on behalf of the HIA found that restricted access to negative gearing would reduce investment in residential housing as well as drive rent prices upward. The research painted negative gearing as positive for both the economy and living standards in Australia.
Wolfe added that maintaining negative gearing was integral to the Government's commitment of “facilitating ongoing access to residential property as a worthwhile retirement investment strategy across all income earners.”
He dismissed the thought of negative gearing being a break for “so called ‘wealthy investors’.”
“Australian Tax Office data confirms that nearly eight of every ten taxpayers with a rental property declare a taxable income of less than $100,000, while 70 per cent earn less than $80,000,” he said.
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