Cut tax breaks for investors, says welfare group

by Caroline Dann15 Aug 2012

The Australian Council of Social Service (ACOSS) is urging the government to cut negative gearing in a bid to address rising poverty and homelessness.

 
It claims the tax breaks are contributing to rising housing costs, which has a knock-on effect on the country's poor.
 
"We do need the political parties to be having a stronger focus on what needs to be done to address poverty and inequality in Australia," said Cassandra Goldie, ACOSS' chief executive.
 
According to The Sydney Morning Herald, the recommendations follow the release of an ACOSS report, which revealed 81% of emergency housing providers were struggling.
 
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COMMENTS

  • by Country Broker 15/08/2012 10:17:07 AM

    If you cut tax breaks for investors there will be less investors in the rental market, that means more rental pressure on the ppor , go the other way and have incentives for investors on housing !

  • by Tristan 15/08/2012 10:26:40 AM

    Wouldn't cutting these tax breaks reduce the no. of investment property owners who can afford to purchase/sustain investment properties, and increasing demand, the increasing rents? So perpetuating the problem. Wouldn't a better idea increasing the incentives so there are more investment properties available in the market.

  • by DB 15/08/2012 10:39:13 AM

    What a rediculous request from ACOSS, An investment property is not a luxury, its a business which forms part of an investment strategy and retirement plan. In the event you are unable to operate this as a business with applicable expense & depreciation claims then it will not be a feasable investment. The roll on effect from this is who then will provide the majority of housing to the rental market ???? ACOSS talk about poverty & inequality, the poverty of our elderly & pensioners is extremely disturbing to me & the current government can assist here by directing money wasted on Ilegal immigrants back to the well being of our elderly who have paid taxes for the majority of there life. In regards to poverty & equality to younger people (or not at pension age) all I can say to ACOSS is these people need to start taking control of there life & stop bludging off the population who work their perverbial off .... In other words get off their perverbial and contribute to the economy & stop blaming everything else for there own inactions. If you of sound mind and a moving body then you can earn an income by guess what?? Oh yes thats right by working !! ACOSS I have one thing to say and that is people who work hard give themselves the oportunity NOT to be equal!