Negative gearing update

Negative gearing has become a strawman in the arguments about housing affordability.

Its abolition isn’t the cure-all the critics would have you believe.

Negative gearing allows ordinary Australians to build household wealth while lifting housing supply. It also helps to boost people’s retirement savings, reducing their reliance on the age pension.

As you know, early this year the Property Council ran highly successful advocacy on negative gearing.

It reached 19.1 million Australians through a mix of print, radio, TV and digital platforms.

As the Federal Election campaign rolls into its fourth week, we now have a clear understanding of the position the major parties are taking to the election.

The Turnbull Government has pledged there will be no changes to negative gearing or capital gains tax arrangements for property investors.

In contrast, the Shorten Opposition has promised to limit negative gearing to new housing, and halve the capital gains tax discount for all assets purchased after 1 July 2017.

The Property Council will continue to be vocal on the issue as we head towards Election Day.

We will reinforce our views around the benefits of maintaining existing arrangements for negative gearing and capitals gains tax – and the risk of changes.

Further information can be found on the Don’t Play With Property website or on the Property Council’s tax advocacy page.