Negative gearing proposal bad for economic growth
Labor’s housing tax proposal and massive tax increase on investment is bad for Australian families and bad for economic growth and jobs, says Member for Hinkler Keith Pitt.
There are 5,741 residents in Hinkler using negative gearing.
“Labor wants to penalise hardworking investors who are using negative gearing to build a future for their families,” Mr Pitt said.
“It’s about time Bill Shorten explained to each of these 5,741 individuals in Hinkler why they think building some modest wealth for their families is so terrible. This is just a tax increase to fund Labor’s spending addiction.
“In Hinkler, those who are negatively gearing have an average net rental loss of $6,537.
“If they weren’t able to negatively gear, those on the middle income tax bracket of 32.5c would face an annual tax increase of $2,125.”
Most of these middle income earners are investing in established housing, which Labor wants to ban.
“The proposed ban would mean middle income investors will have to compete with larger numbers of wealthy investors for a much smaller pool of new housing stock, crowding them out of the opportunity they have right now,” Mr Pitt said.
Labor’s proposal will take up to one third of buyers out of the housing market, which will reduce the value of homes.
“Driving down the value of the most important asset for most Australians is not a strategy for economic growth and enhanced prosperity for the Australian community,” he said.