Negative gearing policy could be one of the big deciding factors in the upcoming election.
Labor’s proposed policy to get rid of negative gearing on existing residential property and increase capital gains tax has been all over the media.
I’ve given my thoughts on negative gearing here.
The Real Estate Institutes from around Australian and other leading Real Estate Agencies have formed a campaign to show these changes are beyond a class war and negative gearing affects everyone.
This policy – if ever adopted – directly affects the millions of Australians who own any property, whether it’s an investment or their own home.
It also affects the 18 million Australians who have a stake in property through their superannuation funds.
But there’s more…
According to the campaign, as well as falling house prices, the knock-on effects will see jobs destroyed and government revenues fall, and may even send the Australian economy into recession.
The industry campaign admits it has a vested interest.
Yes, this policy will affect the property industry, which is now the biggest industry in Australia. Such a policy would rip billions of dollars out of our sector at a stroke.
But it’s obvious that taking billions of dollars out of the economy all at once is a recipe for disaster for all of us.
Doesn’t It Strike You As Strange…
…that all of a sudden, everyone seems to be talking about plans to axe negative gearing and halve capital gains tax concessions for investors, and that some people think this is just a great idea to punish “the rich” who benefit from it?
Doesn’t it strike you as strange that at the heart of this policy sits a report from the ANU that effectively admits it has ignored or denied the consequences of the policy, and which appears to have deliberately understated average incomes to produce more “rich” people?
You can read more thoughts negative gearing here: