• Low and middle income earners benefit most from negative gearing. To abolish negative gearing would make investment more difficult for low and middle income earners.
• 80 per cent of Australians who utilise negative gearing have an income of under $150,000, and the median income of Australians negatively geared is $88,751.
• Changing negative gearing will make it more difficult for these Australians to provide for themselves in retirement.
• Negative gearing is not distorting the Australian taxation system – it reflects efforts to make the tax system neutral across asset classes.
• The Labor Party’s proposal would result in barriers to entry for those who would be forced to buy new expensive housing stock instead of potentially cheaper existing housing stock.
• The Coalition’s policy to reduce “excessive” negative gearing is contrary to their philosophy of encouraging investment and entrepreneurial growth.
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