Prime Minister Malcolm Turnbull has today ruled out any changes to negative gearing and in doing so, has drawn battle lines on housing affordability for this coming election.
If Labor wins the election, it plans to reform negative gearing and the capital gains tax discount effective from 1st July 2017. The move, according to a scare mongering Turnbull, will “drive down home values,[and] drive up rents” – a claim he is yet to throw any evidence behind.
A report from The Australia Institute, shows Turnbull’s electorate of Wentworth as the biggest beneficiary of negative gearing, with property investors losing an average $20,248 each in the 2014 financial year.
» Who’s getting negative? The benefits of negative gearing by federal electorate – The Australia Institute, 29th April 2015.
» BIS Negative Gearing Blunder Embarrasses Government – Who crashed the economy? – 3rd March 2016.
what a POS turnbull is…as if not having 7 properties is enough for him
bad karma mal, i have put a curse on you old mate
Malcolm knows the one thing he can fib about and gain traction in the electorate is falling House and Investment Property vales.
They are betting big on the ‘sky is falling’ panic votes. I’d say going on the evidence of herd behaviour over the last 15 years, it’s looking like a pretty safe bet.
feel like leaving aust when i read this….and taking my educated family
I’m not sure that the groundswell of young voters that can’t buy affordable housing isn’t bigger than the investor group. I’d posit that Labor would be making noises only if they thought it was safe to do so.
Not just the youth but immigrants to the country (although I’ve seen a lot of immigrants go into ridiculous debt and collect investment properties themselves without a halfpenny to scratch their collective culos with).
Labor must know something to make such an audacious call. In the past neither side has been much use to the property problem.
The election night will be exciting at least. I’ll be glued to ABC24.
Never trust a grub that worked for Goldman sacks….pure parasites…
Negative Gearing only works when property values are rising. In a falling market when investors are losing their jobs and incomes and bailing out of property, the government really needs to concentrate on increasing the capital gains tax by removing the 50% concession. The bankers’ PM needs to realise that to keep the economy growing we need to move away from speculative investments to productive investments. With his government spending $100 million per day it is only a matter of time before the panic sets in and they increase all taxes on the producers. Meanwhile Turnbull’s banking cronies will keep their noses deeply in the trough while destroying the economy and demanding welfare.
A prolonged flat lining and fall of property prices will cause mayhem as the debt binge comes home to roost. The so called ‘innovation nation’ is a load of rubbish as if they were serious about making the economy more competitive they would ‘align’ tax policies and eliminate taxes that prevent this objective (negative gearing for instance). They are a bunch of duplicitous scum. Putting that numbnut Pyne in charge of industry is a joke on all of us.
Yes, the ideas boom, and making investing in start ups attractive is complete charade.
85% of investments in this sort of thing goes broke, I suspect 10% get their money back and 5% might make money, of that 1% will make real dollars.
So tell me, is this -ve gearing for the rich who can afford to invest recklessly? It sure isn’t any good to those struggling with keeping food on their table while trying to secure/payoff a home.
What a circus this nations become in 10 years. From the envy of the world, to a complete joke.
This all started when I left a comment on the Age online saying that if Bill Shorten ever wanted to be remembered for anything – and let’s face it, hardly any politician is remembered for anything….all he has to do is come out and say ‘I will remove negative gearing on homes’…..and if the Australian people do not vote for this….then all I can deduce is that the Australian people are not ready for affordable homes. As insane as that is!
About 3 weeks later the Labor party announced their Negative Gearing removal on existing home policy.
So I’m taking the credit for this policy! lol!