Negative gearing is rife in Labor-held electorates, according to an analysis by the federal government. Released yesterday, the income and tax statistics based report released by the Australian Taxation Office shows that some of the highest concentrations of people with negatively geared investment properties are in Labor-held electorates. Of the 1.3 million negatively geared investment properties in Australia, 570,000 are living in Labor held seats. 640,000 are in other electorates. Treasurer Josh Frydenberg told The Australian that Labor’s property plan would punish those who use negative gearing, as well as those who have equity in their homes.
He said the $32 billion plan to wind back negative gearing would inflict serious damage to an already softening property market; and homes would be worth less and renting will cost more.
According to shadow Treasurer Chris Bowen, however, Labor’s policy would only apply to new builds.
“Those currently negatively gearing properties across Australia will still be able to under Labor’s housing affordability reforms,” Mr Bowen told The Australian.
The changes would only hit properties purchased after the planned start date in 2020.
You can read the full report here.
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