Invest
Proposed tax changes to ‘exacerbate’ housing issues
More concerns regarding the impact that negative gearing might have on housing affordability have surfaced as the race to the federal election continues.
Proposed tax changes to ‘exacerbate’ housing issues
More concerns regarding the impact that negative gearing might have on housing affordability have surfaced as the race to the federal election continues.
With housing affordability a central topic for Australia’s upcoming federal election, Labor has proposed that any affordability issues can be resolved by changing the negative gearing laws for existing properties, and the capital gains tax.
Neville Sanders, president of the Real Estate Institute of Australia, said this suggestion is simply not true.
“With large increases in house prices, particularly in our two largest capital cities, there have been many claims that the current tax treatment of negative gearing and capital gains of residential property is exacerbating housing affordability – this is simply not the case,” he said.
“It is supply that is the critical factor in resolving the affordability problem. Changes to current taxation arrangements, as proposed, will do nothing to address affordability; if anything, it will exacerbate the problem.”
Mr Sanders said the public interest is being served and advanced through the current taxation arrangements.
“There is ample research that shows that negative gearing and the capital gains tax discount are not driving excessive, unproductive and speculative investment in housing, but instead they are adding to housing supply, with currently $7 billion a year invested in new dwellings,” he explained.
“One of these [studies], the Henry Review [officially Australia’s Future Tax System Review], initiated by the current opposition when they were in government and released in 2010, recognised that the current tax arrangements placed downward pressure on rents.”
According to Mr Sanders, the answer to addressing affordability lies in tackling the supply-side issues and the deposit gap for first home buyers.
Mr Sanders’ sentiments have been echoed by the Property Council of Australia, which ran an advocacy campaign on negative gearing across print, radio, television and digital platforms.
The Property Council said it will continue to be vocal on the issue as the federal election draws nearer.
“We will reinforce our views around the benefits of maintaining existing arrangements for negative gearing and capitals gains tax – and the risk of changes,” a Property Council release stated.
“A fairer and more efficient tax system can be achieved by maintaining negative gearing and the 50 per cent capital gains tax discount for all forms of investment.”
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Post-pandemic hotspots revealed
With investors eyeing investment opportunities, which hotspots are set to benefit? ...Read more
Property
Houses fall by nearly $100bn
The COVID-19 pandemic has seen a correction in the housing market, with capital cities falling by $98 billion in total value, official figures have shown. ...Read more
Property
Could changing tax law boost regional property prices?
Property investors are urging the Australian government to change tax deductions for travel expenses related to their investment property as a way to stimulate the regional housing market. ...Read more
Property
The importance of statistical weighting in property data
Investors are being urged to deep dive into the data, with statistical weighting likely to show property nationally has fallen despite many regions still performing strongly, according to research. ...Read more
Property
How will border closures impact the property market?
Despite falling migration levels, property prices might not be impacted as much as investors think, an industry expert has explained. ...Read more
Property
Sydney, Brisbane, Melbourne tipped to surge: Westpac
One of Australia’s largest banks is forecasting strong growth in the housing market as low interest rates and availability of credit pushes prices up, despite the country being in its first recessio...Read more
Property
Is now the right time to make a tree or sea change?
The experience of isolating in our homes and suburbs has made many people reconsider what they actually value in a home, writes David Hancock. ...Read more
Property
Hot Property: Biggest headlines this week
Victoria’s COVID-19 restrictions have begun to lift as the rest of the country watches on: Here are the biggest property stories from this week. ...Read more
Property
Post-pandemic hotspots revealed
With investors eyeing investment opportunities, which hotspots are set to benefit? ...Read more
Property
Houses fall by nearly $100bn
The COVID-19 pandemic has seen a correction in the housing market, with capital cities falling by $98 billion in total value, official figures have shown. ...Read more
Property
Could changing tax law boost regional property prices?
Property investors are urging the Australian government to change tax deductions for travel expenses related to their investment property as a way to stimulate the regional housing market. ...Read more
Property
The importance of statistical weighting in property data
Investors are being urged to deep dive into the data, with statistical weighting likely to show property nationally has fallen despite many regions still performing strongly, according to research. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
