Negative gearing here to stay, say pollies
By
Kevin Eddy
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11/08/2010 5:47:00 AM
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2
comments
Both political parties have ruled out the abolition of negative gearing following the federal election.
Both Treasurer Wayne Swan and Shadow Treasurer Joe Hockey assured attendees at a debate at the Canberra Press Club that neither would clamp down on negative gearing on property investment.
The statements were welcomed by REIA president David Airey, who called it "fantastic news".
"The Hawke Government abolished negative gearing for property in 1985 only to have it reinstated in 1987. During that period rents increased by 57.5% in Sydney, by 38.2% in Perth and by 32.0% in Brisbane. At the same time building approvals fell by 13.8%," he commented.
"To amend the current negative gearing provisions for housing as some critics have suggested would be treating real estate differently to other asset classes and create a resource misallocation."
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Latest Comments
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Pardon - Me _ broker on
11 Aug 2010 10:36 AM
OK I hear this it is good policy, what will happen to these policies if the Greens get the balance of power, they are anti tax breaks for people trying to build wealth. Be careful of watermelons in the senate !!!
Melb Broker on
11 Aug 2010 11:34 AM
Paul Keating once tried to eliminate Gearing only to almost desecrate property values. He eventually saw the light and all successive governments have & WILL follow suit. They dont dare do it again.There is now far too many investors and if investors have to sell due to increased holding costs, then all hell will break loose. Dont stress - the Govt wont touch gearing and the Greens will never have the power or the backing.