It’s a quiet Federal Budget for homeowners and investors with negative gearing and capital gains tax both avoiding any changes.
In his Budget speech, Treasurer Scott Morrison said the Government is resisting any changes to limit negative gearing because it would increase the tax burden on Australians trying to invest and provide a future for their families.
“Those earning less than $80,000 a year in taxable income make up two-thirds of those who use negative gearing,” he said.
“We do not consider that taxing these Australians more on their investments, including increasing their capital gains tax, and undermining the value of their own home and investments is a plan for jobs and growth.”
Mr Morrison said it was typically teachers, nurses, police officers defence force workers, office workers and tradies that were investors who use negative gearing.
The Federal Government has been assessing whether to make changes to the negative gearing tax concession after Labor proposed limiting it to new property, but First Home Buyers Australia (FHBA) co-founder Daniel Cohen told Domain he wasn’t surprised first-home buyers were ignored in the Budget.
“We knew they weren’t going to say anything to the issue of housing affordability and first-home buyers,” he said.
The FHBA say it’s lazy and ignorant to leave negative gearing as it is and changes should be made to help younger Australians buy their own home.
Some are happy with the Budget however, including Housing Industry Association chief executive for industry policy Graham Wolfe, who said it will give confidence to the home building industry.
“The reduction in the company tax rate, its immediate extension to businesses with turnovers up to $10 million and the continuation of the $20,000 asset write-off program will also help the small businesses that dominate the residential construction industry, to grow their employment and investment,” he told Domain.