REIV - Negative Gearing Affects Everyone
NEGATIVE GEARING IS NOT A PERK OF “THE RICH.” IT AFFECTS EVERYONE. IF THE PLAN TO GET RID OF IT SUCCEEDS, IT WILL BE A DISASTER FOR OUR FRAGILE ECONOMY. WHY WOULD WE RISK THAT?
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 REIV have established a website www.negativegearingaffectsyou.com .This site is part of a campaign by real estate groups across the country who have united with the Real Estate Institute of Australia to make Australians aware of these disastrous consequences. Our industry participants pride themselves on being apolitical, but this time, the issue is far too important not to speak out.
Yes, this policy will affect the property industry, which is now the biggest industry in Australia. Such a policy would rip billions of dollars out of our sector at a stroke. But it’s obvious that taking billions of dollars out of the economy all at once is a recipe for disaster for all of us.