What Politicians Need To Know About Negative Gearing

What Politicians Need To Know About Negative Gearing

• 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.

To download the report click here

If you've enjoyed reading this article from the Institute of Public Affairs, please consider supporting us by becoming a member or making a donation. It is with your support that we are securing freedom for the future.