Hockey Negative gearing builds wealth for middle Australia

Hockey: Negative gearing builds wealth for middle AustraliaIn an interview with The Weekend Australian, Hockey said negative gearing was “a way for people on medium incomes to get into the property market.”Analysis from the federal government reveals that negative gearing is used overwhelmingly by people working in lower paid professions.This corresponds with the Property Council’s analysis showing that 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 each year declared a net rental loss.”Many hard-working Australians have invested money in real estate to give themselves some financial security,” Hockey said.Property Council chief executive Ken Morrison says 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,” Morrison explains.”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.”