NEGATIVE GEARING – AUSTRALIA

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

Negative gearing main factor in high house prices: Saul Eslake

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Original article by Nick Lenaghan
The Australian Financial Review – Page: 34 : 29-Oct-14

Bank of America Merrill Lynch economist Saul Eslake has downplayed the role of foreign investment in the rising cost of residential properties in Australia. He argues that negative gearing has been a major contributor to the housing boom. Other factors cited by Eslake include the chronic housing shortage and the preference for Australians to live in more expensive inner-city suburbs

CORPORATES
BANK OF AMERICA AUSTRALIA LIMITED, MERRILL LYNCH (AUSTRALIA) PTY LTD