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Report slams government housing approach

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Your Investment Property | 22 Oct 2013, 01:00 PM Agree 0
The Australian government has been advised to eliminate stamp duties, reform tax incentives for property investment and shape-up the private rental sector
  • Gale | 22 Oct 2013, 03:05 PM Agree 0
    Implementing these kind of draconian changes would certainly see investment monies go off shore, and what would the renters rent?
  • Deborah Ens | 22 Oct 2013, 03:43 PM Agree 0
    Tax incentives to investors is effectively a subsidy to renters! Investors currently pay stamp duty, land tax, income tax on rent ,and Capital Gains Tax on a sale. There has to be some incentive or no one will invest and then where will the 30% of the population that is renters live??
  • Sam | 22 Oct 2013, 04:18 PM Agree 0
    Typical Gratten Institutue leftist rubbish. Any substantial change to the way property is taxed will destroy what is a relatively pure market, and play havoc with other investment markets artificially forcing the share market up.
  • Long Term Rental | 22 Oct 2013, 04:34 PM Agree 0
    Reforms to the housing policy should include wider options for renters to have longer term security in terms of lease length. There should also be some protection for tenants from owners who advertise rental housing as long term but only offer 12 months at a time with the intention of moving the property (and the tenants) on as soon as market conditions are right.
    There are plenty of hard-working families who have opted to remain in the rental market but are frustrated by the lack of stability that the current system affords them. Investors are at arms length from tenants and often don't see the impact that their financial decisions make in human terms. Better protection for renters needs to be included within any new housing policy. That way, more people may remain in the rental market increasing the returns that investors will make.
  • Makes sense | 22 Oct 2013, 08:20 PM Agree 0
    A broad base tax makes sense. It only has to be a small amount like $200 - 400 per year per property. There are 7.8 million households in Australia - you do the maths. It would be fairer for all. I would prefer to pay such a tax than stamp duty for my investment properties any day.
    As for forcing investment offshore, fine. Just sell up and go. I'll buy your properties off you (as long as they are in a good location and the yield is good).
  • Mae72 | 22 Oct 2013, 08:39 PM Agree 0
    The renters would be able to buy - pretty logical really Gale!
  • Graham Ko | 22 Oct 2013, 11:39 PM Agree 0
    Removing stamp duty and tax incentives for investors are speculative and there is no sound evidence that it would increase home ownership. Removing stamp duty would create more competition for already short supply of housing and inevitably spike up prices higher. The costs for reducing incentives for property investors would be added onto the renters.

    Sadly, more will become life time renters due to population growth and the main task for the government is to make affordable housing to more Australian.
  • Joshua Vincent | 23 Oct 2013, 08:22 AM Agree 0
    To create wealth we must untax transactions that involve capital Exchanges, like Stamp duty. a broader based property tax - based on land tax -not capital ratings such as Melbourne has are the way to go. Land tax exempts the investment and work that go in to constructing and maintaining a proper building. Land tax also helps eliminate the Free Riders who make their money from holding vacant land out of the essential use and profit for the business owner, builder or homeowner.
  • Dan Sullivan | 23 Oct 2013, 08:36 AM Agree 0
    I don't see how taxing land values can make investments go offshore. It's not like you can ship Australian land to India or China. If people are less eager to own Australian land that they are not using, it only means the price of land will fall, which will make the land more affordable. If you want to untax investments, untax those who are actually *doing* something with their land. That is, untax the things they are doing.
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