Negative gearing builds wealth for middle Australia

The Property Council of Australia welcomes comments from Treasurer Joe Hockey reported in today’s Weekend Australian that there is “no merit” in changing negative gearing for residential property.

As the Government’s analysis shows negative gearing is used overwhelmingly by people working in some of our most valued, but lower paid professions.

In 2012-13 almost 36,000 nurses and midwives, 10,415 emergency service workers, 53,855 teachers, 10,255 social workers and 90,000 clerical staff all earning around or less than $80,000 per annum declared a net rental loss.

“Hardworking Australians should have the opportunity to create wealth for the future and build their own economic security through property,” Chief Executive Ken Morrison said.

“Negative gearing is a well-established, long-standing part of Australia’s tax system and the people who use it most are everyday Australians looking to get ahead.

“This isn’t some tax lurk for the wealthy, it is a legitimate and effective part of our taxation system that is used most by people earning under $80,000 per annum who become property investors through their own hard work.

“Any changes to negative gearing would hit middle Australia hardest and would take away one of the best ways most people have to save for their retirement.”

 

Source – Australian Taxation Office, Residential Development Council, 2015.

Media contact: Fiona Benson | M 0407 294 620 E [email protected]