Leave negative gearing alone: REIA

The recent Grattan Institute’s report Renovating Housing Policy had many in the property crowd talking. While the Real Estate Institute of Australia (REIA) agreed with the report, they said that negative gearing must remain.

REIA president, Peter Bushby, said that the report’s recommendations were generally strongly agreed with.

“We strongly agree with the report’s recommendations to eliminate stamp duties, however it’s essential negative gearing be retained in its current form for the purpose of property investment,” said Bushby.

He said that negative gearing actually helps support the provision of rental accommodation, and for this reason should be left alone as part of the government’s Housing Affordability Fund to help address rental supply.

“It is far too short sighted to link investor interest in housing to negative gearing alone. Negative gearing is only one of a range of factors that contribute to the level of investment in property. Other factors include interest rates, availability and accessibility of finance, share market performance, the unemployment rate, housing supply and consumer confidence,” he said.

“The myth that negative gearing is a plaything of the wealthy also needs to dispelled. The majority of taxpayers with a negatively geared property earn less than $80,000 a year.”