Fact check: Did abolishing negative gearing push up rents?
9 years, 10 months ago

Fact check: Did abolishing negative gearing push up rents?

ABC  

As property prices continue to rise across Australian capital cities, in particular Sydney, the debate around how to address housing affordability problems has intensified. "If you abolish negative gearing on investment properties, there's a strong argument that rents would increase," Mr Hockey said on the ABC's Q&A. Mr Hockey said that in the 1980s, when negative gearing was briefly removed, there was a backlash from investors who increased rents to "replace the lost income" negative gearing had provided. Mr Keating's cabinet submission from 1987 said: "High interest rates on financial assets and the prospects of capital gains on the stock market have reduced the relative attractiveness of investment in rental housing." The ACOSS report said the Sydney and Perth property markets were already "overheated" when negative gearing was removed and apart from the effects of the normal property cycle on these markets, the "main causes" of a slump in property investment were higher interest rates and the stock market boom.

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History of this topic

More than 430,000 Australians could have owned their own home today – if not for negative gearing inaction from seven PMs
5 months, 3 weeks ago

More than 430,000 Australians could have owned their own home today – if not for negative gearing inaction from seven PMs

ABC  

Thirteen years ago at the tax summit called to discuss the Henry Tax Review, David Koch stopped discussion of negative gearing dead in its tracks. 13 billion reasons for change Negative gearing has become so common – in Australia, one in six taxpayers are landlords and 40 per cent of them negatively gear – that we no longer think of …

What is negative gearing, how does it work and does it increase house prices?
11 months, 3 weeks ago

What is negative gearing, how does it work and does it increase house prices?

ABC  

There's been a lot of talk in recent years about how difficult it is for young people to buy a home in Australia, but with everything getting more expensive lately, the conversation has been intensifying. And the discussions usually include terms such as "negative gearing" and "capital gains tax concessions". Janda explains the major benefit comes from combining negative gearing …

Scott Morrison expressed interest in overhauling negative gearing, according to official documents
5 years, 10 months ago

Scott Morrison expressed interest in overhauling negative gearing, according to official documents

ABC  

Prime Minister Scott Morrison expressed interest in overhauling housing tax concessions, including negative gearing, just days into his time as treasurer, according to official documents. Key points: Documents obtained under FOI show the Commonwealth in 2015 was "willing to consider broader tax reform", including on negative gearing Since 2016, the Coalition has used negative gearing to attack the Labor Party …

Labor to limit negative gearing concessions to new properties from January 1
5 years, 11 months ago

Labor to limit negative gearing concessions to new properties from January 1

ABC  

A federal Labor government would limit negative gearing concessions to new properties from January 1 next year, earlier than many analysts and commentators predicted. Key points: Federal Labor argues negative gearing concessions are too generous The change would stop new investors from deducting rental losses from their income tax It would raise an estimated $2.9 billion over four years Shadow …

Negative gearing changes 'could tip Australia into recession', warns John Symond
6 years, 3 months ago

Negative gearing changes 'could tip Australia into recession', warns John Symond

ABC  

A number of housing industry insiders have issued a warning about curbing negative gearing, with mortgage company boss "Aussie John" Symond saying "it could tip Australia into recession". Key points: Labor's rule change would not affect people who are currently negatively gearing properties The UBS's chief economist said he was worried about the effect the change would have on the …

Labor pounces on Scott Morrison's negative gearing 'lie' after release of secret briefing documents
7 years, 2 months ago

Labor pounces on Scott Morrison's negative gearing 'lie' after release of secret briefing documents

ABC  

Federal Labor's negative gearing overhaul would likely have a "small" impact on home values, official documents reveal, contradicting Government claims the policy would "smash" Australia's housing market. The previously confidential advice to Treasurer Scott Morrison from his own department said the Opposition's plan might cause "some downward pressure" and could have "a relatively modest downward impact" on prices. Treasurer Scott …

Scott Morrison reaffirms Coalition's opposition to changing negative gearing tax concessions
7 years, 11 months ago

Scott Morrison reaffirms Coalition's opposition to changing negative gearing tax concessions

ABC  

No changes to negative gearing and a drive to increase private investment in the supply of housing are the key to making the market more affordable, Treasurer Scott Morrison says. Key points: Australians experiencing rental stress, more homeless Australians "We don't need to spend more provided we spend it better," Treasurer says Negative gearing was a key battle in the …

Election 2016: Government maintains negative gearing stance despite Treasury documents
8 years, 9 months ago

Election 2016: Government maintains negative gearing stance despite Treasury documents

ABC  

The Federal Government has argued negative gearing largely benefits average Australians despite being advised otherwise months ago, a document obtained by the ABC reveals. Key points: FOI report shows more than half of negative gearing tax benefits go to top 20 per cent of incomes Bottom 20 per cent of earners getting 5 per cent of benefits Modelling predicts negative …

Regional voters have their say on negative gearing
8 years, 10 months ago

Regional voters have their say on negative gearing

ABC  

Labor's proposed changes to negative gearing have received a mixed response from voters in regional Australia. "Negative gearing for someone who is a worker like myself, is just a play thing for rich people," he said. "We are also going to see radical changes not just for first home buyers but also renters because investors don't have that subsidy they …

Election 2016: Real estate industry unleashes campaign against Labor's negative gearing policy
8 years, 10 months ago

Election 2016: Real estate industry unleashes campaign against Labor's negative gearing policy

ABC  

The Federal Opposition insists it is not concerned about the real estate industry's threat to unleash a campaign against Labor's negative gearing policy. Key points: Labor says negative gearing policy will help first home buyers Real estate industry says it will send rent prices up Labor questions motives of industry, says they have no evidence Property Council say negative gearing …

Malcolm Turnbull pens blog post take-down of report on negative gearing savings
8 years, 11 months ago

Malcolm Turnbull pens blog post take-down of report on negative gearing savings

ABC  

Prime Minister Malcolm Turnbull has written a take-down of an independent report recommending changes to negative gearing, arguing the document is littered with inaccuracies, unsupported claims and direct contradictions. The Government has ruled out changes, while Labor's election policy is to restrict negative gearing to new homes from July next year, with a projected saving of $32.1 billion over a …

Negative gearing: Tax deduction's removal 'would boost Commonwealth revenue by $5b annually'
8 years, 11 months ago

Negative gearing: Tax deduction's removal 'would boost Commonwealth revenue by $5b annually'

ABC  

The Federal Government could save more than $5 billion per year through changes to negative gearing, according to research released by the Grattan Institute. Key points: Current negative gearing arrangements push up house prices, Grattan Institute says Says new housing investment losses should not be deducted from wage income Says restricting negative gearing to new properties "makes it harder for …

Negative gearing causing house prices in Sydney and Melbourne to skyrocket, report says
9 years ago

Negative gearing causing house prices in Sydney and Melbourne to skyrocket, report says

ABC  

A new report on the housing affordability crisis in Sydney and Melbourne calls for the Federal Government to urgently rethink its support of negative gearing. Key points: Report reveals the record-high housing prices in Sydney and Melbourne would lead to social problems Report's author says governments have created the conditions for major concessions for investors REIQ says changing negative gearing …

Row erupts over BIS Shrapnel negative gearing report
9 years ago

Row erupts over BIS Shrapnel negative gearing report

ABC  

Labor has used Question Time to ridicule Treasurer Scott Morrison after he relied on an economic report with a significant error. Key points: BIS Shrapnel report says cutting tax break drives up rental prices and pushes down house values Report misquoted the Australian annual GDP Bill Shorten dismisses report as "a joke" Scott Morrison criticised for labelling report as evidence …

Negative gearing changes good for economy if home prices fall: David Murray
9 years ago

Negative gearing changes good for economy if home prices fall: David Murray

ABC  

Former banker and chair of the Financial Systems Inquiry David Murray says Labor's plan to restrict negative gearing to new housing investment will "distort" the market and possibly lead to a fall in prices for established property. Prime Minister Turnbull and his Treasurer Scott Morrison had reportedly been looking at a plan that would impose a $20,000 cap on annual …

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