NEGATIVE GEARING – AUSTRALIA

Negative gearing in Labor’s sights as Albanese readies for election battle

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Original article by James Massola, David Crowe
The Age – Page: Online : 25-Sep-24

Several federal government sources have confirmed that Labor is considering potential changes to the negative gearing regime ahead of the upcoming election. One of the government officials has indicated that the Treasury has been asked to undertake modelling on possible reform options. Treasury is not believed to be considering the changes to the negative gearing and capital gains tax regimes that former Labor leader Bill Shorten took to the 2016 and 2019 elections.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

‘Bad enough now’: Property investor tax breaks soaring to $22 billion a year by 2035

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Original article by Matthew Elmas
The New Daily – Page: Online : 2-Jul-24

Parliamentary Budget Office data has revealed that property investors received $85 billion in tax breaks over the decade between 2014-15 and 2023-24. The PBO also found that the cost of negative gearing and capital gains discounts will jump to $165 billion over the next decade, with tax breaks to property investors to be worth $22 billion a year by 20235. Australia Institute senior research fellow David Richardson claims that property tax breaks will continue to push up property prices, with Richardson noting things are "bad enough now; he notes the cost of a median house in Sydney is around 13.5 times annual average weekly earnings.

CORPORATES
AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, THE AUSTRALIA INSTITUTE LIMITED

Negative gearing change can win support: Greens

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Original article by Tom McIlroy
The Australian Financial Review – Page: 4 : 28-Feb-24

Prime Minister Anthony Albanese has told a meeting of Labor’s caucus that legislation to establish the Help to Buy shared equity scheme for home buyers is expected to be passed by the lower house this week. However, the said the bill is likely to be blocked in the Senate by the Liberal Party and the Greens. Meanwhile, the Greens have signalled that they are open to a compromise on negative gearing in return for supporting the Help to Buy scheme. The party has proposed restricting negative gearing to existing investment properties, and progressively scrapping the regime for people who buy additional properties.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS, LIBERAL PARTY OF AUSTRALIA

Albanese slaps down Greens over juvenile negative gearing demand

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 13-Feb-24

Prime Minister Anthony Albanese has ruled out making changes to the negative gearing regime and the capital gains tax discount in order to secure the Greens’ support for its Help To Buy shared equity scheme for first-home buyers. Albanese says the federal government will not be open to negotiation, and he has criticised the Greens’ "juvenile approach" to the issue of negative gearing. The government was previously forced to make concessions in 2023 to secure the Greens’ support for its Housing Australia Future Fund. The Opposition intends to vote against the shared equity scheme.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN GREENS

Labor may revive negative gearing

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Original article by Phillip Coorey
The Australian Financial Review – Page: 8 : 27-Nov-19

Shadow housing minister Jason Clare has warned that the housing affordability crisis has not eased since Labor lost the 18 May election, adding that it may get worse. He has raised the prospect that Labor could go into the next federal election with a modified version of its proposed changes to the capital gains and negative gearing regimes that were rejected by voters in May.

CORPORATES
AUSTRALIAN LABOR PARTY, MASTER BUILDERS AUSTRALIA INCORPORATED

Negative gearing a $1.5bn turn-off

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Original article by Olivia Caisley
The Australian – Page: 4 : 1-Aug-19

Research undertaken by Deloitte Access Economics on behalf of the Property Council of Australia suggests that Labor’s proposed negative gearing reforms would have slashed the nation’s GDP by about $1.5bn. It is also estimated that the policy would have resulted in the loss of 7,800 construction industry jobs and cost the sector around $766m. A separate survey of voters in 16 marginal electorates has found that 34 per cent indicated that Labor’s negative gearing and capital gains tax reforms were a key reason why they did not vote for the party at the 18 May election.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIAN LABOR PARTY

Labor review may jettison 2pc tax slug

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 9-Jul-19

A spokesperson for Opposition Leader Anthony Albanese has stressed that Labor has not yet formally dropped its proposed changes to the negative gearing and franking credits regimes, after Albanese gave indications that they will be dumped. Labor intends to review all of its policies in the wake of the federal election loss; some Labor MPs have suggested that increasing the highest marginal income tax rate to 49 per cent by reinstating the budget repair levy is among the policies that may be dropped. Several Labor MPs also say there may be merit in Bill Kelty’s proposal to reduce the top income tax rate.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Bouris calling with a warning about Labor

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Original article by Simon Benson
The Australian – Page: 8 : 17-May-19

Wizard Home Loans founder Mark Bouris has attracted scrutiny from the Australian Electoral Commission for targeting voters via a robo-calling campaign. Bouris, who is not a candidate in the federal election, used automated phone calling technology to contact 200,000 households in marginal electorates. He warned that Labor’s proposed negative gearing and capital gains tax reforms would see house prices fall. Bouris has stressed that he was not acting on behalf of any political party.

CORPORATES
AUSTRALIAN ELECTORAL COMMISSION, AUSTRALIAN LABOR PARTY, WIZARD HOME LOANS, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, LIBERAL PARTY OF AUSTRALIA

Don’t worry if house prices fall, says Bowen

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Original article by Turi Condon, Ben Packham, Greg Brown
The Australian – Page: 1 & 6 : 16-May-19

Property Council of Australia president Stephen Conry says the housing market is "fragile", and it is not the right time for Labor’s proposed changes to the negative gearing regime. Real Estate Institute of Australia president Adrian Kelly warns that the prices of existing properties will fall if Labor implements its reforms, while the Housing Industry Association’s chief economist Tim Reardon says housing rents will rise. Meanwhile, shadow treasurer Chris Bowen has downplayed concerns that homeowners may find themselves in negative equity, arguing that they will only incur a loss if they sell.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, THE REAL ESTATE INSTITUTE OF AUSTRALIA LIMITED, HOUSING INDUSTRY ASSOCIATION LIMITED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, SQM RESEARCH PTY LTD

Property taxes will hit safe Labor seats

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Original article by Duncan Hughes
The Australian Financial Review – Page: 11 : 10-May-19

The Real Estate Institute of New South Wales has urged Labor to reconsider its proposed negative gearing and capital gains tax reforms. CEO Tim McKibbin says most of the 50 suburbs across Sydney that will be hardest-hit by the reforms are in Labor-held electorates. The median values of rental properties in some of these suburbs have fallen sharply in the last year, and the REISW warns that Labor’s reforms could result in a further decline.

CORPORATES
THE REAL ESTATE INSTITUTE OF NEW SOUTH WALES, AUSTRALIAN LABOR PARTY, HERRON TODD WHITE AUSTRALIA PTY LTD