Federal Labor's proposed changes to taxation arrangements for investment properties will prove cataclysmic for Australia’s $7 trillion real estate market and the broader Australian economy.
So, what is the ALP proposing?
The ALP wants to reduce the capital gains tax (CGT) concessions on the sale of investment properties and limit negative gearing to people who invest in new rental properties. The proposed new rules won’t apply to investors who own existing rentals – however as I’ll explain, existing property investors and owner-occupiers for that matter, will be affected if the ALP gets its way.
Sadly, this isn’t the first time the ALP has tried to end the benefits of negative gearing, which helps many hundreds of thousands of mum and dad investors build some wealth for retirement.
Busting the political property myths
There are several myths about negative gearing and the removal of this critical tax break that working Australians are using to prepare themselves for a financially secure retirement.
Consider the implications of a change of government
The forces of supply and demand determine the cost of housing, and sadly, so do the questionable planning red tape imposed on property developers by state governments and local councils. It is not our taxation system that is at fault.
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