Negative gearing has been front and centre of the political agenda this week, and the Finance Brokers Association of Australia has praised the Prime Minister’s stance against any proposed changes to the tax law.
The FBAA says the changes proposed by Labor Leader Bill Shorten will actually making housing affordability worse.
Chief executive of the FBAA, Peter White, agreed with Prime Minister Malcolm Turnbull in saying that if Australia is to change its laws on negative gearing, reducing the tax concessions must be of economic benefit.
Mr White says the proposals put forward by Bill Shorten to limit negative gearing to new housing would worsen housing affordability which is already subject to stamp duty costs and land restrictions.
“Finance brokers can see the enormous benefits that negatively gearing a purchased property can bring for investors whether they be new or experienced in the market,” Mr White told Australian Broker.
“It is no secret that these proposed changes would also drive rent prices up and lock potential first home buyers out of the system.”
The FBAA are currently in negotiations with Assistant Treasurer Kelly O’Dwyer over tax reform and other financial issues.
“I am sure tax reform is also on the agenda for our ongoing discussions and this could directly impact the broking industry, so this is a serious area of concern and the government must get it right.”
