SavvySME Official
SavvySME Official, Official Account at SavvySME

Budgeting and forecasting

Housing affordability: Should we limit/scrap negative gearing?

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3 Answers

Deborah Vella

Negative gearing is one of the factors that feed into the property market. It can be aligned with lack of housing affordability, but so can a number or combination of other factors.

Whether negative gearing should be scrapped or limited over time will depend on the plans for other factors affecting the property market. If the aim of limiting negative gearing is to reduce the tax deductions available for the individual wealthy taxpayers in favour or creating more equality with tax payers who don't own property, then it might be worthwhile to consider. However if the aim of limiting negative gearing is to completely eliminate the housing affordability problem, then more consideration will need to be given.

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Roland Hanekroot

Yes, I think negative gearing should be scrapped... over time... I think a wind down period of 10 or even 20 years maybe, will have a positive effect, couple with making mortgage interest on your own home, principle place of residence, tax deductible, to encourage home ownership... I think it will also lead to higher quality and better considered and designed home building in this country.

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Stefen Livingston

Yes, I think negative gearing should be scrapped... over time... I think a wind down period of 10 or even 20 years maybe, will have a positive effect, couple with making mortgage interest on your own home, principle place of residence, tax deductible, to encourage home ownership... I think it will also lead to higher quality and better considered and designed home building in this country.

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