Negative gearing and economic modelling
The BIS Shrapnel report into negative gearing is a reminder to policy makers that the community needs to see economic modelling about any proposed changes to negative gearing.
“Changes to negative gearing will impact jobs, GDP, rents and housing construction. The questions that needs to be answered are how big the impact? and how big is the risk?” said Ken Morrison, Chief Executive of the Property Council.
“Changes to negative gearing represent a risk to the economy during a time when it is going through transition following the end of the mining boom.
“And you can’t dispute the fact that adding $32 billion in additional property taxes is going to hurt housing markets.
“While the BIS Shrapnel findings are consistent with the concerns we have raised about changes to negative gearing, we want to see the Opposition’s and Treasury’s economic modelling so that we can have a fact based debate.
“The BIS Shrapnel report was not commissioned by the Property Council nor was it released by the Property Council. If we release research we will put our name to it. That is what we did last year when we released the ACIL Allen Consulting Report into negative gearing last year.
“The ACIL Allen Report did warn about the economic risks associated with curtailing negative gearing and increasing capital gains tax”.