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Grattan Institute calls for changes to negative gearing

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Australian Broker | 27 Apr 2016, 08:13 AM Agree 0
An independent think tank is urging for change to negative gearing and capital gains tax, which will affect brokers.
  • Xavier | 27 Apr 2016, 08:23 AM Agree 0
    If the tax deductions are abolished then is it fair to tax the rental income I ask?
    If the answer to this question is a 'yes' then this creates a double dip and unfair system from the ATO
    IF the answer is - logically - 'No' then this $5.3 Billion of government savings is not realistic and the change away from Negative gearing will not generate the savings put forward it seems
  • David | 27 Apr 2016, 09:48 AM Agree 0
    Good point Xavier. Of course the left wing Grattan Institute will come out in full support of the left wing policies. They're just not very good at seeing the very forseeable outcomes. Currently 7% of investment property purchases are for new properties leaving 93% buying established properties. Suddenly, 100% of investors will be competing for that 7% of properties. Considering the First Home Owners Grant now only applies to new homes in many states, these first home buyers will be totally left behind by cashed up investors who will be prepared to pay more so they get the tax incentives. The average mum and dad trying to upgrade their basic family home will immediately lose around 40% of available buyers now that investors won't be interested. Developers and builders will make a killing due to the massive uplift in demand for new investment stock. They won't need to worry about building owner occupied homes as they'll have plenty of business looking after the investors. Those who still want to build their owner occupied home will have to pay heavily inflated prices as they're competing with all the investors to get a home built.
  • wow | 27 Apr 2016, 04:24 PM Agree 0
    dumbest thing I have read in my life
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