In recent months, a policy to get rid of negative gearing on existing residential property and increase capital gains tax has been all over the media.
This policy – if ever adopted – directly affects the millions of Australians who own any property, whether it’s an investment or their own home. It also affects the 18 million Australians who have a stake in property through their superannuation funds.
But as well as falling house prices, the knock-on effects will see jobs destroyed and government revenues fall, and may even send the Australian economy into recession.
The wider property industry (of which real estate is a big part) is the largest employment sector in Australia, providing around one in four of all jobs in this country.
Almost every Australian belongs to a superannuation fund that invests in property; axing negative gearing means returns will be lower, impacting ordinary people when they retire.
By and large the majority of clients we see negatively gearing property are hard-working mums and dads trying to build a nest egg for later on in life so as not to be a burden on society. If we stop this, it will create a society even more dependent on hand-outs from an already over-stretched Government.
Negative gearing is not some taxpayer-funded perk for “the rich.” It matters to, and affects, all Australians.
We encourage all Australians to make an informed choice.