The Real Estate Institute of Australia (REIA) has applauded both the Government and the Opposition for ruling out the abolition of negative gearing for the purpose of property investment at today’s debate at the National Press Club, Canberra.
“This is fantastic news for renters, affordable housing and real estate investors,” said REIA President, Mr David Airey.
Negative gearing, for the purpose of property investment, in its current form is addressing the supply of rental accommodation and is complementary to the goals of the Housing Affordability Fund (HAF).
“The Hawke Government abolished negative gearing for property in 1985 only to have it reinstated in 1987. During that period rents increased by 57.5% in Sydney, by 38.2% in Perth and by 32.0% in Brisbane. At the same time building approvals fell by 13.8%”, continued Mr Airey.
When negative gearing was reinstated, the Government noted that any tax advantages conferred by negative gearing were countered by the CGT regime when capital gains were realised.
“To amend the current negative gearing provisions for housing as some critics have suggested would be treating real estate differently to other asset classes and create a resource misallocation”, he continued.
“The big question now is – when are any of the major political parties going to release a specific housing policy?” he said.
“Housing is a crucial part of the economy and is facing some major challenges, however seems to have been left off the election campaign agenda”, concluded Mr Airey.
#The Real Estate Institute of Australia (REIA) is the national professional association for the real estate sector in Australia.
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