We need negative gearing: housing lobby

We need negative gearing: housing lobby

23 September 2014 by Staff Reporter 2 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, 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 tax payers receiving rental income have a taxable income of less than $80,000,” he said.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2016

With a combined sales volume of $13 billion in 2016, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
REVEALED: The 10 best agents in Australia for 2017

For the first time ever, the top 10 agents in the REB Top 100 Agents ranking are revealed in this exclusive podcast. ...

View all podcasts

Are dodgy agents being punished enough?

Yes (8.6%)
No (55%)
Only in some states (2.3%)
Not all dodgy agents are being found out (34.1%)

Total votes: 220
The voting for this poll has ended on: April 15, 2017
Do you have an industry update?