Opposition warned on negative gearing changes
Labor's proposed policy changes to negative gearing are based on inadequate economic modelling and should not be changed in isolation without a comprehensive review of the taxation policy.
That was the call from the peak body of the property industry, the Property Investment Professionals of Australia (PIPA), which said $6.5 trillion worth of Australians' wealth was in property, which was around three times the amount held in superannuation and equities.
The body's chair, Ben Kingsley, said: "Don't play with this unless you know what you're doing. Such major reform requires comprehensive and detailed modelling. Until there is real evidence to support such a policy, which industry experience tells us doesn't exist, the opposition should be very careful about changing negative gearing and capital gains tax provisions".
Kingsley said property investment contributed to self-sufficient retirees and reduced reliance on the Government to support an ageing population, while also providing one in four jobs.
"Labor's proposed removal of negative gearing on established housing is a poorly-informed policy that will drive property price reductions, increase rents, stifle new property construction, rather than encourage it and cause job losses.
"Is that a good policy?" he asked.
Tax agency business, H&R Block, pointed to Australian Taxation Office (ATO) figures in February, which showed that 72 per cent of investors with negatively geared properties earned $80,000 or less (2011-12 figures), and argued the removal of negative gearing would hit many middle income families who would have to sell their property as their tax bills rose.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.