Glenn Stevens blames negative gearing for lack of corporate housing investment

Glenn Stevens blames negative gearing for lack of corporate housing investment
Glenn Stevens blames negative gearing for lack of corporate housing investment

The former RBA governor Glenn Stevens has blamed yields arising from negative gearing for the lack of investment by corporates in rental housing.

He also endorsed a crackdown on tax concessions for negative gearing in his first major public report since leaving his old job.

Glenn Stevens provided the report for the NSW government's housing affordability package.

Blaming negative gearing for the lack of investment by corporates in rental housing, Stevens said Australia's rental stock was in the hands of individuals rather than corporate investors at least in part because of negative gearing and capital gains tax concessions.

"Individuals are prepared to accept very low rental yields because of the tax concessions.

"Institutional investors are unlikely to find those yields attractive.

"It would be a bad mistake to offer them a separate round of tax concessions or subsidies in order to secure their involvement. It would be better to lessen the generosity of the concessions to individuals."

He said the Commonwealth tax experts should investigate the matter.
 
The NSW government's package was released on Thursday by Premier Gladys Berejiklian.

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