• Home
    • About Us:
    • Testimonials
    • Why use Australian First Finance ?
    • What is A Mortgage Broker
    • CEO
  • Loan Types
    • Personal Loans
    • Investment Loans
    • Line Of Credit
    • Fixed rate
    • Combination Loans
    • Construction
    • Re-finance
    • Debt Consolidation
    • 100% offset
    • Basic Home Loan
    • Lo Doc
    • Car Loans
  • Information
    • FAQ
    • Loans at a Glance
    • Lenders
    • 457 Visa
    • Mortgage Calculator
    • SMSF
    • Family Pledge Guarantor
    • LMI
    • First Home Buyers Grant
    • Joint Tenants or Tenants in common
  • Resources
    • My Credit File
    • First Home Buyer Grant
    • Stamp Duty calculator
    • GST Calculator
    • Budget Planner
    • Foreigin Investment Board
  • Blog
  • Contact Us
    • Phone
    • Loan Inquiry
    • Insurance Inquiry
Australian First Finance

Effects of changes to negative gearing

4/24/2015

0 Comments

 
Treasurer Joe Hockey has warned that changes to negative gearing could force up rents while undermining the financial security of investors and their children.

While closing off changes to a system that costs the Budget more than $4 billion a year, Mr Hockey recommitted to "structural" reforms in education, health and welfare to help repair the Government's bottom line.

It comes after comments by shadow treasurer Chris Bowen this week suggesting a review of negative gearing but with protections for existing investors.

Negative gearing, the system that allows landlords to claim tax deductions for net losses on their rental properties, is used by more than 1.2 million Australians who claimed $14 billion in losses in 2011-12.

Mr Hockey said Labor had not thought through the ramifications of changing the negative gearing regime.

"A lot of Australians have invested their hard-earned money in real estate and, in doing so, they have offset the losses of that real estate against their primary income, in order to give themselves and their children some financial security," he said.

"At the same time, there is a very strong argument that if you were to abolish negative gearing, you would see a significant increase in rents.

"For a lot of people, a massive increase in rents is so unaffordable."

This year, Mr Hockey claimed rents had climbed after the Hawke government changed elements of negative gearing in the mid-1980s.

He was reminded by Grattan Institute economist John Daley that while rents went up in Sydney and Perth, they did not change in Brisbane, Melbourne or Adelaide.

Mr Hockey is under pressure within the Government to deliver a more politically palatable Budget after the problems that befell last year's fiscal blueprint.

This year's deficit is expected to reach $40 billion, with a future return to surplus likely to be pushed back.

Some of the biggest savings in last year's Budget garnered the most adverse political reaction, but Mr Hockey stood by them yesterday.

The Tax Institute has backed the ALP for bringing up major tax reform issues, supporting a debate over the party's plans to wind back superannuation concessions for high-income earners.


0 Comments



Leave a Reply.

    Author

    Liane is an extremely experienced and down to earth Mortgage Broker. She has a very personal approach to determining your wants and needs, and matching them to the right finance structure.

    Archives

    October 2018
    March 2016
    October 2015
    September 2015
    August 2015
    June 2015
    May 2015
    April 2015

    Categories

    All
    APRA Tightens Loan Restrictions
    Are You Over 50 Years Of Age Seeking A Home Loan
    Close The Gates
    CRACKDOWN By The Banking Regulator
    Effects Of Changes To Negative Gearing
    Joint Tenants & Tenants In Common
    PROPERTY A FIRM FAVORITE
    Property Investors
    Saving For A Home Deposit
    What Is Diversification Of Assetts

    RSS Feed

Contact us
About Us
Phone



  FAQ  
Disclaimer &  Privacy  Policy 
               
Picture


© All rights reserved Australian First Finance (AFF)
Australian First Finance is a Corporate Credit Representative (CR No. 396887) of BLSSA Pty Ltd (Australian Credit Licence No. 391237)
Australian First Finance is a member of Australian Financial Complaints Authority  (AFCA) – Member Number 63696 and Australian First Finance is a member of Mortgage and Finance Association of Australasia (MFAA) – Member Number 3166
​
Photo used under Creative Commons from Stephen CWH