Voters still to be convinced on negative gearing policies: Fairfax/Ipsos poll

Staff ReporterMarch 26, 20170 min read

A majority of voters think real estate tax concessions should be cut or left alone, while also backing the federal government's $50 billion plan to cut company taxes than oppose it, according to a recent poll. 

Amid the housing affordability debate ahead of the May budget, the poll finds there is neither a majority for or against whether investor taxes of negative gearing and the 50 percent capital gains tax concession should be curbed.

The poll by Fairfax Media/Ipsos found 35 per cent of the people surveyed indicating tax concessions for real estate investors be reduced, while 40 percent said they should remain the same. Only 19 per cent said the concessions should be increased.

Lowering tax concessions for housing was most popular with people aged over 55, and least popular (24 percent) for people aged 18 to 24, according to the survey of 1,400 respondents over the weekend.

Labor says negative gearing should be available only for new investors to new homes only and cutting the capital gains tax (CGT) concession to 25 percent for investors who hold the asset for at least a year.

The Coalition opposes touching negative gearing but has been looking at CGT options as part of its housing affordability package for the May budget, Fairfax media reported.

The Treasury has done extensive research for the government on the issue.

But on the decision by the Fair Work Commission to cut Sunday penalty rates for retail, hospitality, pharmacy, and fast food workers, the view is more emphatic, said the survey. Almost two-thirds, or 63 percent, do not buy into the argument that more businesses will choose to open on Sundays or public holidays once the pay rates are reduced. Just 29 percent believe otherwise.

The poll also finds voters evenly divided over the government's plans to cut the company tax rate to 25 percent from from 30 percent over the next 10 years.

Despite a concerted campaign by Labor against the tax cuts, 44 percent support the 10-year plan while 39 pe cent are opposed.

Staff Reporter

Negative gearing
Property Tax
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