Reforming Negative Gearing
The Greens have been proud to lead the debate on genuine taxation reform. Our proposal is to reform the unfair tax laws that have locked entire generations of Australians out of home ownership and affordable, stable rentals.
Negative gearing costs the community at least $4 billion a year.
Why should taxpayers continue to subsidise investment properties when so many people are struggling to afford a home to live in?
Removing this unfair distortion from the tax system is an essential part of the national discussion on tax reform.
The biggest winners from negative gearing are the nation's highest income earners. Over half of individual taxpayers with negatively geared rental housing investments are in the top 10% of personal taxpayers, with 30% earning over $500,000. The tax benefit of negative gearing is 10 times more for the highest income earners than for the lowest.
We propose to deliver billions in budget savings from reform of negative gearing, that should be used, in part, for new affordable housing for thousands of families and individuals stranded on social housing waiting lists and experiencing homelessness.
Our proposal is based on models outlined in consecutive reports by a wide range of advocates and economists.
The Parliamentary Budget Office (PBO) has provided costing for removing negative gearing for all non-business asset classes, for assets purchased on or after 1 July 2015, with grandfathering arrangements for existing investments. The PBO estimated this proposal would increase revenue by $2.9 billion over the 2014-15 forward estimates, and $42.5 billion over the next decade.
Latest on Reforming Negative Gearing
04 May 2016
29 Feb 2016
29 Feb 2016