There’s been a lot of debate surrounding negative gearing lately.
While Prime Minister Tony Abbott ruled out any changes to negative gearing last week, Labor’s Shadow Treasurer Chris Bowen has signalled a Labor government would take the issue to the next election and consider winding it back.
Speaking at the National Press Club on Wednesday, Bowen said it would be:
“Irresponsible to rule out going to the next election with changes to, for example, negative gearing.”
“I have said our principle will be 1. Do not disadvantage people who have made investments in good faith under current rules. 2. Do not risk reducing the supply of new housing or, if possible, improve the situation with the supply of new housing’.
I’ve recently written a blog – why be so negative about negative gearing, but maybe Mr. Bowen doesn’t realise that most negatively geared investment properties are owned by ordinary Australian “battlers”, not wealthy ugly property investors as you can see in the following table which shows most negatively geared property investors earn less than $80,000:
Source: Herald Sun