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

SQM urges phasing in of gearing reforms

Original article by Michael Bleby
The Australian Financial Review – Page: 35 & 38 : 21-Mar-19

SQM Research MD Louis Christopher says Labor should implement its proposed negative gearing and capital gains tax reforms gradually if it wins the federal election, to avoid a "shock" to the broader economy. Research by SQM suggests that Labor’s reforms could potentially result in a 12 per cent decline in residential property prices over three years, while rents could rise sharply as supply is reduced. SQM adds that two official interest rate cuts by January 2020 would see housing prices fall by just 4-8 over three years, as well as lower rent increases.

CORPORATES
SQM RESEARCH PTY LTD, AUSTRALIAN LABOR PARTY, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY

Greens’ $20m man now says no more tax breaks

Original article by Chip Le Grand, Christine Lacy
The Australian – Page: 1 & 4 : 15-Mar-19

Prominent barrister and Greens candidate Julian Burnside has declined to disclose whether he used negative gearing to build a property portfolio that is estimated to be worth about $20m. The Greens want to abolish negative gearing on all future residential property purchases, while its policy would restrict existing investors to negatively gearing just one property. Burnside says it is not fair that the system benefits wealthy people such as himself at the expense of first-home buyers. The Greens policies will not affect his investment portfolio.

CORPORATES
AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY, MELBOURNE SAVAGE CLUB, MARITIME UNION OF AUSTRALIA, PATRICK STEVEDORES HOLDINGS PTY LTD

‘Time to pounce’: Investors rush to beat change

Original article by Ingrid Fuary-Wagner
The Australian Financial Review – Page: 9 : 18-Feb-19

Real estate investors are preparing to acquire established properties in the event that Labor wins the upcoming federal election. Labor intends to abolish negative gearing on established properties, although it will still allow it for newly-built homes. However, any such changes would be unlikely to take effect until 1 July 2020. Victor Kumar of Right Property Group says he would expect to see a big increase in sales of established properties in the period between the election and when any legislation takes effect.

CORPORATES
AUSTRALIAN LABOR PARTY, RIGHT PROPERTY GROUP

Bowen touts $200b tax hike buffer

Original article by John Kehoe
The Australian Financial Review – Page: 1 & 4 : 23-Jan-19

Shadow treasurer Chris Bowen identifies Australia’s high level of household debt and low wages growth as key issues that concern him. Bowen adds that Labor’s proposed $200bn package of tax increases is necessary to provide the nation with a "fiscal buffer" in the event of a global economic downturn. He has also defended Labor’s plan to direct the bulk of tax relief to low- and middle-income earners, arguing that they tend to spend more than people on high incomes. Bowen has also downplayed fears that Labor’s negative gearing reforms would have an adverse effect on residential property values.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, INTERNATIONAL MONETARY FUND

ALP’s tax reforms will sting its voters

Original article by Adam Creighton, Michael Roddan
The Australian – Page: 5 : 21-Jan-19

Sixteen per cent of those who voted Labor at the 2016 federal election owned an investment property, according to research by the Australian National University. With Labor planning to make changes to negative gearing if it wins the next election, ANU professor Ian McAllister notes that 16 per cent of Labor voters "equates to a lot of voters". He says the fact that Labor plans to grandfather its changes could reduce the possible impact to its vote. Meanwhile, a study of Australian Taxation Office data indicates that over 200,000 voters in Labor-held seats could be affected by its plans to increase capital gains tax.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY

Labor creating a rental famine

Original article by Greg Brown
The Australian – Page: 2 : 7-Jan-19

Liberal senator Dean Smith contends that young Australians would be most affected by Labor’s proposed changes to negative gearing. With 2.1 million renters aged between 20 and 34 in Australia, Smith says Labor’s plans represent an opportunity for the federal government to portray itself as a better option for voters in this age group. Shadow treasurer Chris Bowen says he would be happy to have a debate on whether Labor or the Coalition has the best housing policies for young people.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, SQM RESEARCH PTY LTD

Labor’s spending plans could hit a wall

Original article by John Kehoe
The Australian Financial Review – Page: 5 : 13-Dec-18

Labor plans to increase tax revenue by about $30bn over four years if it wins the 2019 federal election, and by nearly $280bn over a decade. However, the majority of Senate crossbenchers oppose Labor’s key tax policy initiatives, including its negative gearing reforms and the abolition of cash refunds for excess dividend imputation credits. Analysis suggests that Labor’s tax revenue would be up to $19bn lower than forecast if the Senate were to reject its key tax measures.

CORPORATES
AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY, AUSTRALIAN CONSERVATIVES, AUSTRALIAN GREENS, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY

Labor’s tax grab faces Senate block

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 12-Dec-18

Labor may not have sufficient support in the Senate for its proposal to abolish cash refunds for excess dividend imputation credits if it wins the 2019 federal election. Labor would require the support of the Greens and four crossbenchers to pass the reforms before the current Senate is dissolved on 30 June. However, nine of the 10 crossbenchers oppose the policy, with Fraser Anning describing it as a "socialist retiree tax". In addition, none of the current senators support Labor’s proposal to restrict negative gearing to new homes, although some favour capping the number of properties that can be negatively geared.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY, CENTRE ALLIANCE

One-year delay likely for negative gearing changes

Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 6-Dec-18

It is unlikely that Labor would be able to legislate its proposed negative gearing reforms in time for the start of the 2019-20 financial year if it wins the next federal election. The poll is tipped to be held on 11 or 18 May 2019, which would give a Labor government just six weeks to enact its reforms for them to take effect on 1 July. This means the reforms would most likely take effect in July 2020, although a Labor source has raised the possibility that the legislation could be backdated if it is passed after 1 July.

CORPORATES
AUSTRALIAN LABOR PARTY, CENTRE ALLIANCE, ONE NATION PARTY