Building the tax conversation

Building the tax conversationA grassroots conversation needs to take place to communicate the importance of negative gearing to the community, says Property Council of Australia chief executive Ken Morrison.New TV, radio, newspaper and digital advertising rolled out over the next month aim to remind Australians that playing with negative gearing is a risk to the property industry and to the economy.”Almost two million Australians own an investment property and almost 1.2 million negative gear”, Morrison says.Morrison says “sudden lurches in policy” risk an industry that is a significant contributor to jobs and growth.The property industry generates 1.1 million jobs and one ninth of Australia’s gross domestic product.”Our message to both sides of politics is: don’t play with negative gearing.”In an opinion piece in the Australian Financial Review last Thursday, Morrison pointed out that owning an investment property is the working person’s means of building prosperity. “Two thirds of all people who negative gear are middle income earners with incomes of $80,000 or less. This includes 53,800 teachers, 42,0 tradies, 35,900 nurses and 10,400 emergency services workers,” he wrote.A state-by-state analysis of ATO postcode data confirms that the centres of negative gearing are found in the outer suburbs of our cities and in regional centres. Hot spots include Campbelltown, the Central Coast, Mackay, Gladstone, Launceston, Werribee, Ballarat, Canning Vale and Mount Gambier.Morrison says the Property Council’s argument is based on facts and not politics.”Tax is always a legitimate area of debate and we are happy to put the case for our industry and the millions of Australians who rely on it.”Morrison says the Property Council is not embarking on a “multi-million-dollar blitz of the airwaves.” Instead, it is “starting a conversation with the grassroots” of the industry, with advertising to run over the next month.”The tradies, bricklayers, plumbers, carpenters, landscapers, surveyors, real estate agents and investors who make up this industry can be found in every community throughout the country. That is who we will be talking to.”Frankly, we intend to win this debate on the strength of our arguments, rather than through a large advertising spend.”Playing with negative gearing is a risk to our industry and the economy. We would be negligent as the advocates of the industry not to say so.”View the Property Council’s Don’t play with property advertisement, read the facts and sign the petition.