Menu
News

Welfare group says negative gearing distorts market

AN Australian welfare body has called on the Federal Government to address negative gearing issues to improve housing affordability.

Australian Council of Social Service chief Cassandra Goldie said negative gearing was part of a wider tax problem the government needed to tackle in its tax white paper next year.

Dr Goldie's comments came after a Housing Industry Association -commissioned report, Economic Impacts of Negative Gearing of Residential Property, was released this week.

"Negative gearing distorts investment activity to favour speculative investment in housing and other assets funded by debt and puts upward pressure on house prices … (it) adds to the boom and bust cycle in housing," she said.

"The RBA may be forced to use higher interest rates to calm the housing market.

"ACOSS advocates for deductions for expenses relating to passive investments in housing, shares and other similar assets to be quarantined to offset income from those assets only, including capital gains, rather than all personal income as is currently the case."

While Dr Goldie supported HIA's call to abolish stamp duty, she criticised the group's pro-negative gearing stance.

When the research was released on Monday, HIA managing director Shane Goodwin said the removal of negative gearing would increase taxes and discourage investment.

"With an ageing workforce and future pressure on services, policy settings such as negative gearing that promote wealth creation and self-sufficiency in retirement should be promoted," he said.

Mr Goodwin said negative gearing was not the domain of wealthy investors, pointing to ATO figures that state 74% of taxpayers receiving rental income had a taxable income of less than $80,000.

- APN NEWSDESK

Topics:  australian council of social service property market



'You're the boss, mate': Man won't stop interrupting magistrate

Gladstone Court House, Yarroon Street.



Photo Brenda Strong / The Observer

Selwyn Noel Eather, 53, said he had 'unknowingly' ingested drugs.

Safe Haven's chance to set up a natural refuge

TINDER DRY: Ms Janssen said because of the very dry conditions on the South Australian property they found no evidence of wombats breeding and "no babies”.

Instead of being killed, wombats may be re-homed in South Australia.

NEXT STAGE: New community asset coming to Tannum Sands

LISTEN UP: The new stage will mean the committee behind the BAM festival will no longer have to hire a stage each month.

The facility will be donated to council by BTABC and Boyne Smelters.

Local Partners