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Negative gearing not going anywhere

By Grace Ormsby 26 March 2022 | 1 minute read

Both major Australian political parties have pledged a commitment to retain negative gearing should they be elected into power at the upcoming federal election.

Negative gearing

On Friday, Smart Property Investment reported that the Labor Party would be introducing an additional 10,000 places for the First Home Loan Deposit scheme for regional dwellers.

The Real Estate Institute of Australia (REIA) welcomed that pledge – and also revealed it had secured Labor’s commitment to retain negative gearing, meaning both major parties now support the continuation of the investment property tax program.

President Hayden Groves said both the government and the opposition have now “promised to the Australian people and investors on the advice of REIA that negative gearing will continue to be supported”.

He hopes it provides investors with the confidence to continue investing in the pre-election period.

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“This is very different from the elections in 2016 and 2019 and we are glad that this certainty is being offered to our markets, our businesses, investors and tenants,” Mr Groves said.

He explained that lessons are being learned in New Zealand after negative gearing was removed as a policy there, so he is glad “both parties support our investors – and the 27 per cent of Australians that live in private rentals”.

The president also raised comments made by shadow treasurer Jim Chalmers, who has said that if elected as Treasurer, he would be willing to lead a national conversation on reform to stamp duty.

Mr Groves said he is pleased by this stance noting that “without national leadership to phase out this antiquated tax, it will just be a promise of reform from the introduction of the GST in the year 2000 that remains undelivered”.

Turning his attention to Labor’s plan to provide an extra 10,000 places to regional first home buyers, he re-iterated his support for the expansion of the scheme, before expressing that the REIA would “love to see more investments from both sides of politics on a plan to increase supply of homes to both buy and rent”.

RELATED TERMS

Negative gearing

Negative gearing occurs when the rental income of a property is not enough to cover the total costs of managing the rental and re-paying the interest portion of the loan.

Negative gearing

Negative gearing occurs when the rental income of a property is not enough to cover the total costs of managing the rental and re-paying the interest portion of the loan.

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or structures that come with it, whether natural or man-made.

Real estate

Real estate is a type of real property that refers to any land and its permanent improvement or structures that come with it, whether natural or man-made.

About the author

Grace Ormsby

Grace Ormsby

Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and... Read more



Negative gearing not going anywhere
Negative gearing
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