Source: HIA
The Housing Industry Association (HIA) has welcomed the announcement by the Prime Minister and Treasurer that negative gearing arrangements will remain unchanged.
“Negative gearing promotes private investment in the residential rental market, stimulates economic activity and relieves pressure off social housing and ultimately the public purse,” said
HIA Chief Executive Industry Policy and Media, Graham Wolfe.
“With an ageing workforce and mounting pressure on publicly funded services, retaining negative gearing will support the delivery of a larger stock of rental accommodation, increasing
access to shelter, while promoting wealth creation and self-sufficiency in retirement for hundreds of thousands of ‘mum and dad’ investors.”
“Negative gearing is not the domain of so-called “wealthy investors”, said Mr Wolfe.
“Australian Tax Office data confirms that nearly eight of every ten tax payers with a rental property declare a taxable income of less than $100,000, while 70 per cent earn less than
$80,000.”
Research conducted by Independent Economics on behalf of the Housing Industry Association (HIA) confirmed that restricting access to negative gearing for residential property would
reduce investment in housing and put upward pressure on rents. Research confirms that negative gearing also provides a positive force for the Australian economy and Australian living
standards.
“Today’s announcement compliments the Government’s commitment earlier in the year to retain capital gains tax arrangements, facilitating ongoing access to residential property as a
worthwhile retirement investment strategy across all income earners,” Mr Wolfe added.
