On 25 April 2016 the Grattan Institute released a report entitled 'Hot property: negative gearing and capital gains tax'. It finds that, contrary to urban myth, rents won’t change much, nor will housing markets collapse.
And on page 27 of this reports it explains the role that negative gearing plays in undermining the security of tenure of tenants of residential premises across Australia:
How the media reports it ...
From the ABC, 'Negative gearing: Tax deduction's removal "would boost Commonwealth revenue by $1.6b annually"'. Read more at: http://www.abc.net.au/news/2016-04-25/research-calls-for-abolishing-income-tax-deduction/7356270
From The Sydney Morning Herald , 'Top earners benefit most from negative gearing, Grattan Institute finds' and , indeed,' surgeons, anaesthetists, finance managers and lawyers will be the overwhelming beneficiaries of the Turnbull government's decision not to touch negative gearing in the budget. Read more at: www.smh.com.au/business/federal-budget/federal-budget-2016-top-earners-benefit-most-from-negative-gearing-grattan-institute-finds-20160425-goeef5.html
And Peter Martin's comments at: http://www.smh.com.au/federal-politics/federal-election-2016-opinion/federal-election-2016-malcolm-turnbull-out-on-a-limb-over-negative-gearing-20160425-goeoj3.html
Let's leave the last word to Adrian Pisarski of National Shelter who states:
And on page 27 of this reports it explains the role that negative gearing plays in undermining the security of tenure of tenants of residential premises across Australia:
The higher churn of properties encouraged by negative gearing also exacerbates a lack of secure long term tenancies in Australia. Most of Australia’s housing stock is owned by landlords with only one or two properties, because progressive land taxes significantly reduce the returns from larger landholdings. As many of these landlords are negatively geared, and want to turn over their properties in order to stay negatively geared, most Australian landlords are reluctant to agree to long-term tenancies. Their political interests have also led to Australian tenancy law providing much less security for tenants than in other countries.Check out this report at: https://grattan.edu.au/report/hot-property/
How the media reports it ...
From the ABC, 'Negative gearing: Tax deduction's removal "would boost Commonwealth revenue by $1.6b annually"'. Read more at: http://www.abc.net.au/news/2016-04-25/research-calls-for-abolishing-income-tax-deduction/7356270
From The Sydney Morning Herald , 'Top earners benefit most from negative gearing, Grattan Institute finds' and , indeed,' surgeons, anaesthetists, finance managers and lawyers will be the overwhelming beneficiaries of the Turnbull government's decision not to touch negative gearing in the budget. Read more at: www.smh.com.au/business/federal-budget/federal-budget-2016-top-earners-benefit-most-from-negative-gearing-grattan-institute-finds-20160425-goeef5.html
And Peter Martin's comments at: http://www.smh.com.au/federal-politics/federal-election-2016-opinion/federal-election-2016-malcolm-turnbull-out-on-a-limb-over-negative-gearing-20160425-goeoj3.html
Let's leave the last word to Adrian Pisarski of National Shelter who states:
I'm surprised that younger people in Australia are not throwing bricks at auctions ...Read more at: http://www.smh.com.au/federal-politics/political-news/throwing-bricks-at-auctions-negative-gearing-fight-begins-after-turnbull-rules-out-changes-20160425-goe2ms.html
It appears there may be reasons why the Liberal have backed down over negative gearing. The top ten suburbs that negative gear are apparently all Liberal seats, with Wentworth having the highest amount of people negative gearing with about 20%.
ReplyDeleteMy information is the Greens oppose negative gearing and have done for some time.