Negative gearing reform 'unpopular' black hole for investors
The results of a new survey show that the majority of Australians don’t understand the federal opposition’s negative gearing policy or how it could impact them.
Detailed in a new report by JWS Research and commissioned by the Housing Industry Association, the majority of Australians, polled from all age groups, political persuasions and socio-economic backgrounds, do not understand Labor’s proposed reforms to negative gearing and capital gains tax.
The survey found that 66 per cent do not understand Labor’s proposed reforms to negative gearing and capital gains tax, while 34 per cent are aware and understand the policy at some level.
Further, 52 per cent believe rents will go up, and 74 per cent also believe there needs to be a review of the policy.
“HIA has always said that changes to negative gearing and capital gains tax for housing are bad policy,” said Graham Wolfe, HIA managing director.
“This research confirms how unpopular these changes are across all political persuasions.
“Twice as many voters oppose these changes than support them.”
When Australians vote at the upcoming election in May, Mr Wolfe said most people are being asked to take into consideration a key policy of the opposition without properly understanding it or its impact.
“If these changes are made, rents will rise as supply dries up due to a lack of investment in new housing. This will make renting a home less affordable,” Mr Wolfe said.
“If rents rise, renters saving for a deposit for their own home will take a backward step.
“These changes are anti-investment. They fail to recognise that private rental accommodation provides homes for almost 3 million families, and reducing the supply of private rental homes will only lead to an increase in rents.”
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