A political plan to scrap negative gearing has been slammed as a misleading and ill-conceived policy that would hurt poorer Australians.
Property Council of Australia chief executive Ken Morrison has criticised a proposal by the Greens, who want to remove negative gearing for new investment properties and divert the savings to social and public housing.
“The Greens’ plan to scrap negative gearing is dangerous and will only make housing affordability worse,” Mr Morrison said, adding that the removal of negative gearing would halt the supply of new housing and drive up prices for renters and home owners.
“It’s not credible to blame a century-old, fundamental plank of our taxation system for current housing affordability problems.”
Mr Morrison said the solution to housing affordability is to focus on planning blockages and housing taxes that are hindering the supply of new housing.
“We would encourage the Greens to take a look at the actual ATO data, which clearly shows at least two-thirds of Australians who declare a net rental loss earn around $80,000 per annum or less,” he said.
“These are not property barons – they are ordinary Australians saving for their future.”
Mr Morrison said the property industry wants housing to be affordable, which is why it has advocated strongly for “real policy solutions” to address this problem, such as tax and planning reform.