Capital gains tax, GST, worked-related deductions and negative gearing have all had time in the media spotlight as politicians and lobby groups debate the potential winners and losers of touted changes.
Labor has proposed restricting negative gearing to new homes – a move they say will boost government revenue and level the playing field for first home buyers.
But Domain Group chief economist Andrew Wilson has cautioned that changes to negative gearing could “re-ignite the property boom”… we presume he means in Sydney and Melbourne as Brisbane’s boom has been more of a sustained simmer.
Such changes could see investors rush in, buying up existing real estate before the cut-off date, Domain reported. This would heighten competition in first home buyer markets.
Needless to say property buyers from the investor and owner occupier camps will be watching the tax debate closely.
If you’ve read this far and find yourself wondering “what the hell is negative gearing?” then puzzle no more. The clever people at Domain have released this video: Negative gearing explained using monopoly. Enjoy.
