31,300 Tasmanian landlords could be hit by changes to negative gearing

In the wake of Saturday’s announcement by the Shorten Labor Opposition and potential changes in the May Federal Budget, 31,300 landlords across Tasmania could be hit if alterations are made to negative gearing.

“31,300 people own an investment property in Tasmania including 18,400 who use negative gearing,” said Brian Wightman Executive Director for the Property Council in Tasmania.

“Most people who buy an investment property are mums and dads.

“Across Australia, there are 840,000 people who negatively gear and have incomes below $80,000 a year.

“They aren’t rich people but they are using property to secure their financial future.

“We don’t want investment properties to end up like superannuation where successive governments chop and change the rules all the time,” Mr Wightman said.

The top ten postcodes in Tasmania where investors who use negative gearing reside are:

  1. Launceston (7250)                                          2,115
  2. Bellerive (7018)                                              965
  3. Devonport (7310)                                            936
  4. Sandy Bay (7005)                                            795
  5. Hobart (7000)                                                  770
  6. Burnie (7320)                                                  555
  7. New Town/Lenah Valley (7008)                     535
  8. Ulverstone (7315)                                           525
  9. Lindisfarne (7015)                                           455
  10. Kings Meadows (7249)                                   375

http://auspost.com.au/postcode

Mr Wightman said this investment was underpinning the property sector and jobs in Tasmania.

“Property is a vital part of the economy. Last year we witnessed 2,800 dwelling commencements in Tasmania.

“It is estimated that one third of all new residential investment – in this case 940 is from investors.

“The construction of a typical house includes the use of 40 trades and sub trades – and Tasmania can’t thumb its nose to property investment.

“If construction takes a hit then jobs will be lost and renters will be squeezed.

“During a time when the economic outlook is uncertain, political leaders shouldn’t play with a sector that is vital to the economy,” Mr Wightman said.

Mr Wightman offered it was important for property investors to let their local Federal MP know that the government shouldn’t play with an important part of the economy.

Media contact:  Brian Wightman  |M  0429 073 773  |E  bwightman@propertycouncil.com.au