Federal Member for Pearce, Christian Porter has said no to Labor’s negative gearing plan because of the detrimental effects it will have on the 8,849 hard working people in Pearce using negative gearing to get ahead.
The Coalition Government rejects Labor’s proposal to limit negative gearing to new housing on the basis that it will take up to one third of buyers out of the housing market consequently reducing 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 nation.
“Labor wants to penalise middle income investors who are using negative gearing to build a future for their families,” Mr Porter said.
“In Pearce, those who are negatively gearing have an average net rental loss of $8,915. 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 $2,897.
“Most of these middle income earners are investing in established housing – which Labor wants to ban.
“Under Labor’s proposal 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 that they have right now.
“The last thing our transitioning economy needs is a tax hit on hardworking Australians just trying to get ahead.”
The Australian Prudential Regulatory Authority (APRA) has already taken action to ease risks in lending practices. The evidence is that the previous growth in housing prices has moderated and that housing affordability across Australia is improving.