Federal Opposition criticised over negative gearing resurrection

By |
A leading property lobby group has hit out at the Federal Opposition for dredging up its proposed changes for negative gearing.

The Property Council of Australia (PCA) has accused the Labor Party of not respecting the will of the Australian people after it called on the Turnbull Government to adopt its plans to restrict negative gearing to new builds and halve the current capital gains tax discount as the debate over budget repair continues.

“On 2 July, the Australian people rejected the Opposition plan to add $32 billion in new taxes on Australian property. Australians understood that the policy would drive up rents and cost jobs during a time when increasing housing supply is more important than ever,” PCA chief executive Ken Morrison said.

“The Government has a mandate for the continuation of the existing policy, just like the Opposition would have had a mandate had they won. The Opposition should respect the decision of the Australian people,” Morrison said.

While the PCA believes the changes to negative gearing and the CGT should be off the table, well known economist Saul Eslake believes the Government should be considering some changes to property tax arrangements as Treasure Scott Morrison warns Australia’s national debt could soon hit $1 trillion.

“While I understand that it's probably a bridge too far for the Government to consider Labor's proposals in relation to negative gearing, it doesn't seem to me to be unreasonable for the Government to contemplate some of the measures Labor proposed with regards to the capital gains discount, for example, which even the property industry has acknowledged is worthy of at least some consideration,” Eslake told ABC News.

Ken Morrison and the PCA acknowledged budget repair is a pressing issue, however they still believe the status quo should remain given the election result and the proven benefits of current arrangements.

“It's well known that we disagreed with the Opposition's negative gearing policy going into the election. However, the Opposition did the honourable thing by taking their policy to the people and we have always respected that” Ken Morrison said.

“The Government also took a clear policy position to the people to continue with a policy that has worked for 100 years and that delivers more housing and jobs and takes pressure off rents/"

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : mortdale , alderley , flemington , alexandria , freshwater

go back
  • Thomas says on 31/08/2016 04:53:20 PM

    When everyday worker are getting taxed at 33%, and the negative geared property is taking money from the poor to the rich. I say cut the negative gearing, and tax land use properly for all the service that is being provided by the government.

  • Bill says on 03/09/2016 04:53:58 AM

    Do you really expect to actually get the services? They'd take the extra cash and waste it. Seriously, if you had a business, would you want any of the current crop of clowns running it?

Get help financing your investment

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here