Industry calls for negative gearing retention


Industry calls for negative gearing retention

Posted on Friday, May 09 2014 at 12:46 PM

The Real Estate Institute of Australia (REIA) says any change to negative gearing would impact on the supply of housing and the level of rents in an already tight rental market.

In its pre-budget submission, the REIA’s analysis of the impact of the
Henry Review recommendation that deductions and income associated with rental
property should be discounted by 40 per cent shows this would result in rent
increases of more than four per cent.

“To amend the current negative gearing provisions for housing would be
treating real estate differently to other asset classes, create a distortion on
the investment landscape, and result in a resource misallocation,” REIA
president Peter Bushby says.

“The view that negative gearing is for wealthy investors is a myth. ATO
data shows fewer than 80 per cent of the total individual taxpayers that are
claiming a tax deduction for property earn less than $80,000 a year.”

The REIA also wants to see improvement in the quality of delivery of
vocational education and training.

“We have to ensure that the Australian Skills Quality Authority’s
funding is enough to see nationally approved quality standards are met for
vocational education and training (VET),” Bushby says,  

Mr Bushby said he was concerned at the Audit Commission recommendations
that VET policy and programs should be devolved to the states.

“There is a clear role for the Federal Government in developing national
standards to ensure the quality of competency and curriculum through national training
packages,” he says.

 

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