The Finance Brokers Association of Australia
(FBAA) has praised the Prime Minister’s stance against the proposed changes to negative gearing put forward by the opposition, saying it will worsen housing afforability.
, chief executive of the FBAA has agreed with Prime Minister Malcolm Turnbull, who said any changes to negative gearing and reductions in tax concessions must “stack up economically”.
Speaking about budget reform, opposition leader Bill Shorten said the current negative gearing policy and capital gains discount does not boost housing supply and will cost the budget over $10 billion this year alone. Shorten proposed negative gearing on property investments should be limited to new housing.
However, White says this would worsen housing affordability, which is already subject to “ridiculously high stamp duty costs and ongoing land restrictions”.
“Finance brokers can see the enormous benefits that negatively gearing a purchased property can bring for investors whether they be new or experienced in the market,” White said.
“It is no secret that these proposed changes would also drive rent prices up and lock potential first home buyers out of the system.”
White says the association is currently involved in one-on-one talks with Assistant Treasurer Kelly O’Dwyer over a range of financial issues.
“I am sure tax reform is also on the agenda for our ongoing discussions and this could directly impact the broking industry, so this is a serious area of concern and the government must get it right.”