NEGATIVE GEARING – AUSTRALIA

Gearing proposal won’t hit renters

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Original article by Michael Bleby
The Australian Financial Review – Page: 36 : 23-Jun-16

Research suggests that the Australian Labor Party’s proposal to impose restrictions on negative gearing would have limited impact on rents. A study conducted by SQM Research suggests that rents would remain largely unchanged for the next few years, due to extra supply. SQM Research MD Louis Christopher calculated that the proposed policy would result in a rise of 1.2 percentage points in average rental yields. An adjustment of either rents rising or prices falling would happen only after four years of the new rules being in operation.

CORPORATES
SQM RESEARCH PTY LTD, AUSTRALIAN LABOR PARTY

Shorten’s policies ‘to cut house prices’

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Original article by Sid Maher
The Australian – Page: 1 & 8 : 21-Jun-16

Adept Economics has released the results of independent modelling which suggests that house prices would fall by an average of four per cent if the Australian Labor Party’s proposed changes to the negative gearing and capital gains tax regimes are implemented. The modelling also suggests that apartments in inner-city regions could fall be up to five per cent. The report, which was produced on behalf of Walshs Financial Planning, concludes that there are risks associated with the policy, and changes should be made if Labor wins the 2016 federal election.

CORPORATES
ADEPT ECONOMICS, WALSHS FINANCIAL PLANNING PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN TAXATION OFFICE, GRATTAN INSTITUTE, URBAN DEVELOPMENT INSTITUTE OF AUSTRALIA

Labor’s crackdown on negative gearing ‘a threat to small business’

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Original article by David Uren
The Australian – Page: 1 & 6 : 7-Mar-16

CPA Australia’s senior tax counsel Paul Drum has warned that the Federal Opposition’s proposed changes to the negative gearing regime could adversely affect small business owners, particularly sole proprietors. The Australian Labor Party proposes to restrict negative gearing to new properties if it wins the 2016 federal election, but shadow treasurer Chris Bowen rejects suggestions that the reforms would affect business financing.

CORPORATES
CPA AUSTRALIA, AUSTRALIAN LABOR PARTY, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED, RESERVE BANK OF AUSTRALIA, NSW BUSINESS CHAMBER LIMITED, CRYSTAL WEALTH PARTNERS LIMITED, OMNIWEALTH PTY LTD

‘Spending cuts must fund tax relief’

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Original article by David Crowe
The Australian – Page: 2 : 1-Mar-16

Federal Treasurer Scott Morrison has told a meeting of Coalition MPs of the need to reduce income taxes over the long-term, stressing that this must be achieved via spending cuts in the Budget. Meanwhile, backbenchers expressed concern about proposed changes to the negative gearing regime for property investors, with one MP warning that any such reforms will be rejected by the party room. Morrison also said Prime Minister Malcolm Turnbull is fully prepared to seek a double-dissolution election.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIA. ATTORNEY-GENERAL’S DEPT, AUSTRALIAN LABOR PARTY

Turnbull: no change to capital gains tax

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Original article by Sid Maher
The Australian – Page: 1 & 4 : 23-Feb-16

The Australian Government’s options for tax reform have become more limited after Prime Minister Malcolm Turnbull told Parliament that changes to the capital gains tax regime are not on its agenda. Turnbull warned that the Opposition’s proposed capital gains tax reforms will deter investment in Australia, while its policy on negative gearing would adversely affect house prices. Changes to superannuation tax concessions and tax deductions for work-related expenses are among the few tax reform options that are still available to the Government.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF FINANCE, BUSINESS COUNCIL OF AUSTRALIA, BLUESCOPE STEEL LIMITED – ASX BSL, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN NATIONAL UNIVERSITY, AUSTRALIA. DEPT OF THE TREASURY, NEWSPOLL

Negative gearing cap tipped to push up rents

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Original article by James Eyers
The Australian Financial Review – Page: 19 : 19-Feb-16

Mortgage Choice has posted a 2015-16 interim net profit of $A10.1m, which is 12.4 per cent higher than previously. The mortgage broker’s revenue rose by 5.4 per cent to $A102.3m, and its loan book increased by 4.7 per cent to a record $A50.7bn. CEO John Flavell has warned that the Federal Government’s proposed changes to the negative gearing regime would result in rent increases, as it would reduce the pool of rental housing.

CORPORATES
MORTGAGE CHOICE LIMITED – ASX MOC, MACQUARIE GROUP LIMITED – ASX MQG, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Negative gearing debate sparks divisions, passion

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Original article by Anne Hyland, Larry Schlesinger
The Australian Financial Review – Page: 1 & 4 : 17-Feb-16

Mayne Pharma director Roger Corbett has urged the Australian Government to leave the negative gearing regime unchanged, arguing that it has increased the wealth of people on middle incomes. Yellow Brick Road’s Mark Bouris also opposes any change to negative gearing, warning of the impact on economic growth and the investment market. However, former Perpetual fund manager Peter Morgan and ex-Reserve Bank board member Warwick McKibbin favour the abolition of negative gearing.

CORPORATES
MAYNE PHARMA GROUP LIMITED – ASX MYX, YELLOW BRICK ROAD HOLDINGS LIMITED – ASX YBR, PERPETUAL LIMITED – ASX PPT, RESERVE BANK OF AUSTRALIA, WOOLWORTHS LIMITED – ASX WOW, WAL-MART STORES INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE, BHP BILLITON LIMITED – ASX BHP, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Liberal MPs wary on negative gearing

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 16-Feb-16

Discussions about negative gearing have a political aspect. Both the Coalition and the Opposition want to impose restrictions in this area despite resistance from investors. The Australian Labor Party has proposed limiting negative gearing to new homes, while Treasurer Scott Morrison favours limits on the number of negatively geared properties or a cap on annual tax deductions. Coalition MPs are worried about a backlash from voters.

CORPORATES
LIBERAL PARTY OF AUSTRALIA, PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

PM scrambles for a tax policy

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 9-Feb-16

Treasurer Scott Morrison says tax reform will be included in the May 2016 Budget, although the Australian Government has backed down on its proposal to increase the GST. It will instead look at options such changes to superannuation tax concessions and reducing income tax rates via the abolition of tax deductions for work-related expenses. However, Morrison has ruled out making any changes to the negative gearing regime.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIAN LABOR PARTY, AUSTRALIAN TAXATION OFFICE

Don’t touch negative gearing, MPs warned

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Original article by Phillip Coorey
The Australian Financial Review – Page: 4 : 5-Feb-16

The Property Council of Australia stresses the importance of negative gearing for housing. It will argue in a submission to the joint standing committee on economics’ inquiry into tax deductibility that negative gearing should be retained in its current form. The Property Council has warned that it could mobilise negatively geared voters in marginal seats to persuade politicians to leave negative gearing unchanged.

CORPORATES
PROPERTY COUNCIL OF AUSTRALIA LIMITED, AUSTRALIAN LABOR PARTY