Labor review may jettison 2pc tax slug

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

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

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

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

Senators reject ALP tax grab

Original article by Simon Benson, Michael McKenna, Joe Kelly
The Australian – Page: 1 & 4 : 7-May-19

Key upper house crossbenchers have rejected claims by shadow treasurer Chris Bowen that Labor will have a mandate for tax reform if it wins the federal election. Centre Alliance senator Stirling Griff contends that Labor will only have a mandate if it gains a majority in the Senate. Griff opposes Labor’s proposal to abolish cash refunds for excess dividend imputation credits, although he says Centre Alliance may be willing to negotiate regarding changes to the negative gearing regime. One Nation leader Pauline Hanson also opposes the franking credit reforms.

CORPORATES
AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, UNITED AUSTRALIA PARTY, AUSTRALIAN GREENS, AUSTRALIAN CONSERVATIVES

State revenues under threat: PM

Original article by Primrose Riordan, Ben Packham, Ben Wilmot
The Australian – Page: 6 : 1-May-19

Prime Minister Scott Morrison says Labor’s proposed changes to the negative gearing and capital gains tax regimes could result in lower GST and stamp duty revenue for state governments. He added that the states should seek a guarantee from Labor that its reforms would not affect their revenue. Shadow treasurer Chris Bowen in turn has blamed the Coalition for the housing market downturn, which has reduced state governments’ stamp duty revenue.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, REAL ESTATE INSTITUTE OF WESTERN AUSTRALIA, STOCKLAND – ASX SGP, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, HOUSING INDUSTRY ASSOCIATION LIMITED, MASTER BUILDERS AUSTRALIA INCORPORATED

Record 1.3 million landlords cash in on negative gearing as shake-up looms

Original article by Ben Butler, Michael Roddan
The Australian – Page: 19 & 26 : 17-Apr-19

Data from the Australian Taxation Office shows that the number of property investors who use negative gearing rose from 631,000 to about 1.3 million between 2000 and 2017. In contrast, the number of investors who broke even or made a profit rose from 532,000 to around 856,000. The figures also show that the proportion of investors who are aged 60+ rose from around 15 per cent to about 23.5 per cent. Robert Deutsch of the Tax Institute does not expect Labor’s proposed negative gearing reforms to have much effect on housing prices.

CORPORATES
AUSTRALIAN TAXATION OFFICE, THE TAX INSTITUTE, AUSTRALIAN LABOR PARTY, BIS OXFORD ECONOMICS PTY LTD, UNIVERSITY OF NEW SOUTH WALES

Why Morrison needs to turn up the fear factor on Labor

Original article by Robert Gottliebsen
The Australian – Page: 29 : 16-Apr-19

The Coalition’s best chance of winning the federal election may to be to launch a fear campaign against key Labor policies, such as its franking credit reforms and changes to the negative gearing regime. The latter policy will almost certainly result in lower house values over time; the Coalition should pitch its fear campaign at home buyers who are in or are close to being in negative equity, as well as small business owners who use their homes as capital. However, Prime Minister Scott Morrison is unlikely to seek to cash in on the fear factor until it is far too late.

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

Top 10 housing stress seats all held by Labor

Original article by Matthew Cranston
The Australian Financial Review – Page: 8 : 1-Apr-19

Labor is hoping to make housing more affordable if it wins the federal election by implementing changes to the negative gearing and capital gains tax regimes. Analysis conducted by the National Centre for Social & Economic Modelling indicates that the 10 electorates with the highest level of housing stress are all held by Labor, while Digital Finance Analytics estimates that the number of households facing mortgage stress now exceeds one million. The NATSEM analysis also indicates that Labor holds eight of the 10 seats with the highest level of poverty.

CORPORATES
AUSTRALIAN LABOR PARTY, UNIVERSITY OF CANBERRA. NATIONAL CENTRE FOR SOCIAL AND ECONOMIC MODELLING, DIGITAL FINANCE ANALYTICS, LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN GREENS

Property tax crackdown from Jan 1

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 29-Mar-19

Labor is set to announce that its proposed changes to the negative gearing and capital gains tax regimes will take effect from the start of January 2020 if it wins the federal election. Shadow treasurer Chris Bowen will state on 29 March that this will give investors sufficient time to prepare for the reforms, which Labor had initially flagged more than three years ago. Labor’s reforms would most likely require the support of at least two independents in the upper house, in addition to the Greens.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY, CENTRE ALLIANCE, FINANCIAL SERVICES COUNCIL