Ensure you never miss an issue of the
real estate business bulletin
We need negative gearing: HIA

We need negative gearing: HIA

by Staff Reporter 0 comments

Restricting access to negative gearing would reduce housing investment and affordability, according to new research.

The research paper, which was commissioned by the Housing Industry Association (HIA), also claimed that negative gearing helps restrain rents.

Managing director Shane Goodwin said discounting residential negative gearing in isolation would reduce the efficiency and equity of the tax system.

“New housing is one of the most highly taxed sectors in the economy, and the removal of negative gearing would only make that situation worse and discourage investment,” he said.

“This would in turn reduce housing supply and increase the cost of renting.”

Mr Goodwin said negative gearing promotes private investment in the rental market, which in turn stimulates economic activity and takes pressure off social housing.

“With an ageing workforce and future pressure on services, policy settings such as negative gearing that promote wealth creation and self-sufficiency in retirement should be promoted,” he said.

Negative gearing benefits more than just wealthy investors, according to Mr Goodwin.

“Figures from the Australian Taxation Office demonstrate that 74 per cent of taxpayers receiving rental income have a taxable income of less than $80,000,” he said.

We need negative gearing: HIA
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?