Senator Derryn Hinch says he'll seek even more restrictive negative gearing than Labor

Senator Derryn Hinch says he'll seek even more restrictive negative gearing than Labor
Senator Derryn Hinch says he'll seek even more restrictive negative gearing than Labor

The Senate crossbencher Derryn Hinch has told The New Daily he was open to supporting Labor’s negative gearing changes.

But the Victorian politician appears to seek to take the grandfathering aspect further that the opposition policy.

"My view is that I would vote for the ALP changes if grandfathered, but I would limit negatively geared properties to two or three.”

Senior MPs doubt the Shorten-Bowen policy will pass the Senate if Labor wins the next election.

The policy survived subdued attacks at the last election.

A Labor frontbencher told The New Daily it will be a very difficult Senate. 

“We can announce a date, say July 1, 2019 but I don’t think we are going to get it through. We’ve got to get 39 votes.”

While the Labor Party remains strongly committed to the policy, there are calls for the ALP to delay the introduction while the housing market remains volatile in Sydney and Melbourne.

In recent weeks, Treasurer Josh Frydenberg has ramped up the campaign over Labor’s negative gearing policy.

Labor also proposes reducing the capital gains discount from 50 per cent to 25 per cent.

Shorten’s changes will “grandfather” existing property investors, which means the 1.3 million Australians who currently negatively gear can continue to do so.

“For yonks I resisted changing it. I own one negatively geared property,” Hinch said.

“Now I know of one senator who owns more than 20 negatively geared properties. Not what was intended.

“I agree that nurses and cops own such properties.

"My view is that I would vote for the ALP changes if grandfathered, but I would limit negatively geared properties to two or three.”

It is not the first time Hinch has raised the issue giving insights in his 2017 Budget in reply speech.

"I support negative gearing.

"I have declared in my pecuniary interest register that I have one heavily mortgaged negatively geared apartment, but I am open to legislation to limit the number of properties, residential or commercial, that a person can negatively gear.

"I am increasingly being convinced of a limit of two or three such properties,' he said last year.

"It could help first-time buyers who are being swamped by investors, local and foreign, at every weekend auction."

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Negative gearing Labor Party

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