Federal Labor's negative gearing overhaul would likely have a "small" impact on home values, official documents reveal, contradicting Government claims the policy would "smash" Australia's housing market.
The previously confidential advice to Treasurer Scott Morrison from his own department said the Opposition's plan might cause "some downward pressure" and could have "a relatively modest downward impact" on prices.
The ALP's plan to restrict the tax deduction, along with halving the capital gains tax (CGT) discount, was a major issue during the 2016 election campaign.
Coalition figures have variously claimed the plan would attack the housing market with a "chainsaw", "axe" or "sledgehammer", and would bring Australia's economy to a "shuddering halt".
But after winning a two-year legal fight, the ABC can reveal Treasury officials in early 2016 gave very different advice to Mr Morrison.
"The ALP policies could introduce some downward pressure on property prices in the short term, particularly if the commencement of the policy coincides with a weaker housing market," they wrote.
"In the long term, increases in taxation on rental property could have a relatively modest downward impact on property prices."
Many of Australia's two million property investors make a loss, and negative gearing allows them to use the losses to reduce their overall tax bill.
The capital gains tax discount generally sees half the profits from the sale of an investment property go untaxed.
http://www.abc.net.au/news/2018-01-08/govt-negative-gearing-claims-contradicted-by-official-advice-foi/9309736
Once again the libs show themselves to be dishonest lying arseholes.
ohh and Goose boy,
Wait a minute... wait a minute.
Do the treasury papers say or not that changes to Negative gearing will hardly affect the price of housing?
Doesn't that contradict the ALP's policy line?
no, it doesn't. Labor never said housing prices would crash. this is what they said
http://www.alp.org.au/negativegearing
both a retard like you isn't interested in the truth now are you goose.