Now its negative gearing and CGT discounts again
“Anthony Albanese says he’s yet to be convinced that curbing negative gearing and capital gains tax deductions for investors would improve housing supply and affordability, as economists remain split over to what extent such changes would help.
While keeping alive the prospect of taking a policy to the next election, the prime minister said he personally had not commissioned Treasury to examine options for the government.”
Albanese says it’s not his kite, but he doesn't mind watching it fly.
AFR consulted some housing economists who were not Trotskyites, and they said unsurprisingly ending negative gearing would reduce price for exisiting houses 4-5% but increase rents. Any grandfather clause would simply water down the effect.
They also said tax policy had little to do with housing, and that the biggest way to improve housing supply is to reduce red tape and development restrictions in desirable suburbs.
Meanwhile developers say construction costs are currently too high for all bar luxury developments. Ohh and they hate the local government and state planning restrictions too.
Meanwhile tax experts said people negative gear (loss making property investments carried over as a tax deduction v other income) because the marginal rate of tax is too high, and that real tax reform is needed for productivity with lower top marginal rates of tax but more consumption and land taxes.
“Anthony Albanese says he’s yet to be convinced that curbing negative gearing and capital gains tax deductions for investors would improve housing supply and affordability, as economists remain split over to what extent such changes would help.
While keeping alive the prospect of taking a policy to the next election, the prime minister said he personally had not commissioned Treasury to examine options for the government.”
Albanese says it’s not his kite, but he doesn't mind watching it fly.
AFR consulted some housing economists who were not Trotskyites, and they said unsurprisingly ending negative gearing would reduce price for exisiting houses 4-5% but increase rents. Any grandfather clause would simply water down the effect.
They also said tax policy had little to do with housing, and that the biggest way to improve housing supply is to reduce red tape and development restrictions in desirable suburbs.
Meanwhile developers say construction costs are currently too high for all bar luxury developments. Ohh and they hate the local government and state planning restrictions too.
Meanwhile tax experts said people negative gear (loss making property investments carried over as a tax deduction v other income) because the marginal rate of tax is too high, and that real tax reform is needed for productivity with lower top marginal rates of tax but more consumption and land taxes.
statistics: Posted by NewGolconda — 11:01 PM - 1 day ago — Replies 0 — Views 30