Labor's negative gearing policy splits the nation

Labor's negative gearing policy splits the nation
Labor's negative gearing policy splits the nation

Australians are unconvinced by the flagship Labor reform on negative gearing, with 44 percent are against the policy change.

A poll found 43 percent in favour of restricting the tax deductions on investment properties.

The remaining 13 percent did not know.

It comes as Opposition Leader Bill Shorten mounted a spirited defence of his tax plans at the ALP national conference.

The Ipsos poll conducted for Nine Entertainment also found that voters were against the mooted change on capital gains tax on investments, with 48 per cent against and 43 per cent in favour.

Labor voters overwhelmingly back the changes.

Labor wants to halve the capital gains tax discount and restrict negative gearing to newly built homes, while “grandfathering” existing negative gearing arrangements.

It has claimed the policy would raise $32 billion over 10 years, making it Labor’s second-biggest policy after its proposal to raise $56 billion over a decade by restricting tax refunds on dividend imputation.

The Opposition leader noted on Sunday that the tax reforms were not “universally loved.” 

“I would rather see more young couples buy their first home, than spend billions subsidising investors acquiring multiple properties,” he told the Labor national conference.

Those who oppose Mr Shorten’s changes to negative gearing include 30 per cent of Labor voters, 26 per cent of Greens voters, 70 per cent of One Nation voters and 61 per cent of Coalition voters.

The policy is backed by 60 per cent of Labor voters.

The poll comes as housing policy emerges as an election issue.

The biggest Labor policy at the national conference was a plan for $6.6 billion in affordable housing over 10 years by giving a subsidy to developers to build new homes and charge rents that are 20 per cent below market rates.

The plan only includes $102 million over its first four years.

The Labor policy revives the National Housing Affordability Scheme introduced by the Rudd government in 2008, which also gave a subsidy to developers but did not fund the full cost of construction.

The government is committed to spend almost $30 billion on housing over the next five years.

Negative gearing Labor Party

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