The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
2 WEEKS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 550 ALREADY ATTENDING
2 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
ResidentialStaff WriterSun 19 Jun 16

New Report Highlights Value Of Negative Gearing - Property Council

n

A new analysis of the Australian residential property market would be a "sobering read" for policy makers considering making major changes to the tax treatment of residential housing, according to the Property Council of Australia (PCA).

The CoreLogic report released last week shows over 2 million Australians own an investment property worth a total of $1.3 trillion. These investors drive supply of low income housing – with over 53% of all investment properties worth less than $500,000.

“Rents across Australia have fallen by 0.2 per cent over the past 12 months – benefiting the millions of Australians who rent," said Ken Morrison, Chief Executive of the Property Council of Australia.

“The Opposition has proposed radical changes to the treatment of investment properties that will raise an additional $32 billion. Much of this will be passed on to tenants and will limit new investment.

“Investors are already paying stamp duty, council rates, land tax and capital gains tax. According to the ABS, Australians are already paying over $45 billion in property taxes.  In NSW, for example, stamp duty alone adds $35,000 onto the price of the average property.

“The CoreLogic data also confirms that most Australians who own an investment property own just one – with an average of 1.28 rental properties per investor.

Mr Morrison said the report highlighed that negative gearing is a vital tool for young people and middle income earners to help secure their financial future..

“It is middle income earners, with taxable incomes of $60,000 to $80,000 who are most likely to claim a negative gearing loss. Two in three investment property owners in this income claim a loss against their property.

“While 50 – 64 year olds are more likely to own an investment property, it is younger people who are more likely to negatively gear.

Mr Morrison said the report highlighted the importance of property investors to new housing construction.

“Investors comprise about 40 per cent of mortgage demand for new housing. Investors are creating additional supply which is playing an important role in easing pressures on housing affordability.

“The construction of a new dwelling typically involves 40 tradies and subbies – these jobs are at risk if investors walk away from new housing construction.

“This is a real threat given the decisions of the Victorian, NSW and Queensland Governments to introduce major new taxes on investments made by foreign investors.

“This report is a reminder that changing capital gains tax and negative gearing will impact the decisions of investors. It will mean less new housing supply, more pressure on rents, and distortions within the market with different assets treated differently.

“Changing negative gearing is a risk during a time when our economy is in transition."

ResidentialAustraliaOpinion
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
View All >
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
Income growth and price dips have done little to improve the situation, according to fresh data from the Urban Land Inst…
LATEST
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
2 Min
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
3 Min
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
3 Min
Logan Wastewater Funding hero
Infrastructure

Flush of Funding to Deliver 20,000 New SEQ Homes

Phil Bartsch
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/negative-gearing-property-council