How much would negative gearing changes impact maintenance?
New analysis has found how much is being spent on the repairs and maintenance of negatively geared properties, with one association claiming that Labor’s proposed negative gearing changes could make doing these repairs “significantly less attractive”.
Master Builders Australia has come out with the claim that over $1.8 billion is being spent on repairing and maintaining negatively geared properties
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According to Denita Wawn, CEO of Master Builders Australia, thousands of Australians could be under threat from Labor’s proposed negative gearing changes.
“This work is not about renovations or capital improvements, it’s not about adding swimming pools or pergolas, this is the day-to-day running repairs that keep a home up to standard for residents and renters,” Ms Wawn said.
“Labor’s promise to restrict negative gearing will make investing in these essential repairs significantly less attractive as it is implemented.”
Not only would the negative gearing proposals make repairs and maintenance less appealing, the changes would also have an impact on the home building industry, Ms Wawn added.
“Repairs and maintenance and maintenance work is a lifeline for many home builders when times are tough as they have been in markets such as Perth and Adelaide for the past few years, and we can expect the same in Sydney and Melbourne as those markets continue to fall,” she said.
“The next federal government needs to back the thousands of small building businesses who repair and maintain negatively geared investment properties, especially as the housing market softens, not bring in policies that will put their businesses at risk,” Ms Wawn said.
The state and territory breakdown of the value of repairs and maintenance on negatively geared properties, according to recently released ATO figures for the financial year 2016-17, are:
|
State/Territory |
Total value of repairs/maintenance on |
|
NSW |
$515.9 |
|
Victoria |
$402.0 |
|
Queensland |
$509.4 |
|
South Australia |
$115.4 |
|
Western Australia |
$234.5 |
|
Tasmania |
$31.6 |
|
Northern Territory |
$26.3 |
|
ACT |
$26.2 |
|
Australia |
$1861
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