REIA calls for holistic review of all property taxes
Negative gearing and capital gains tax on property investments should be retained in their current form, the Real Estate...
In light of the federal opposition’s stunning election loss, property experts have weighed up the likelihood of changes to negative gearing being re-introduced.
Plans to limit negative gearing to new properties from 2020 was one of the core tax changes on the Labor Party’s agenda in the lead up to the federal election.
The Labor Party’s aggressive plans for property, which also included halving the CGT discount from 2020, are widely tipped as a core reason leader Bill Shorten and his party fell short of expectations.
In particular, there were strong swings in Queensland against Labor, with three out of four voters supporting the conservative economic agenda of the Coalition.
For these reasons and more, property experts like Paul Glossop, founder and director of Pure Property Investment, believe it’s unlikely we’ll see changes to negative gearing in this generation.
“It comes back to sentiment,” he said in a live webcast with sister title Smart Property Investment. You can view that webcast for free here.
“Ultimately, people want to buy and invest with confidence. Not just over the next three years… the next five to 10 years and beyond,” he said.
On top of that, the chances of adjustments to negative gearing under a Liberal government are virtually unimaginable, given how heavily federal Treasurer Josh Frydenberg and Prime Minister Scott Morrison came down on the proposals in the lead up to the election.
Mr Morrison said property markets, which are still in decline nationally, would face a “concrete landing” if tax concessions that entice investors were to be tinkered with.