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Tag: Negative gearing
Scott Morrison says the vast majority of Australians who use negative gearing earn modest incomes. ABC Fact Check investigates.
Mum and dad trucking companies… Mum and dad investors… Dum and mad people using negative gearing as a way of reducing their tax… Well, these people are just awe-fucking-some! Yep, I guess that I’m a little prejudiced and that I have a conflict of interest… To explain: Every now and then, I’m accused of being…
Treasurer Scott Morrison has hit back at claims negative gearing is only for well-off people who own multiple houses, saying it is also for poor people who own multiple houses.
In a fiery speech to property industry professionals today, Mr Morrison said negative gearing was used by all sorts of people with a property portfolio.
“I know some people won’t agree with me, but they simply refuse to analyse the data. Take a look at any typical Aussie with a second, third, or fourth property – rich or poor – and chances are they’ll use negative gearing,” he said.
The Treasurer said most of the people he knew used negative gearing. “Even some of the backbenchers I know use negative gearing to offset the losses on their investment properties. It’s very widespread,” he said.
Negative gearing is a deeply flawed policy, because – amongst other things – it encourages risky debt driven speculation in an already overheated market.
Source: The truth about negative gearing
- The claim: Treasurer Joe Hockey says abolishing negative gearing could push up rents, because that’s what happened in the 1980s.
- The verdict: During the period negative gearing was abolished rents notably increased only in Sydney and Perth. Other factors, including high interest rates and the share market boom, were also contributors to rent increases at the time. Mr Hockey’s claim doesn’t stack up.
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