Facebook Google Menu Linkedin lock Pinterest Search Twitter

Advertisement

Politics

Jan 30, 2006

Housing: a crucial part of tax reform?

The papers are running big this morning with the Business Council of Australia's attack on the Federal Government for mass

Share

The
papers are running big this morning with the Business Council of Australia’s attack
on the Federal Government for massively underestimating
its tax revenues,
accusing it of thwarting tax reform and damaging competitiveness.

What they bury, though, is the BCA’s
comments on negative gearing. They’re just as severe. Take The Age‘s report:

For the first
time the council appeared to broach the politically delicate subject of the tax
treatment of investment housing, warning that the system “creates biases
against investment in productive assets.”

“The tax
system favours lower-risk investment, especially when geared, compared with
higher-risk business investment,” it said.

Under the tax
regime, investors can write off borrowing costs for investments against all
income, and get a 50% discount on the capital gains tax when they sell.

Crikey
was the first outlet in Australia to draw attention to the housing
affordability surveys produced by US outfit Demographia. When the
latest
came
out last week, our meeja didn’t need a nudge. They were onto the results quick
smart.

Sydney, Hobart, Adelaide and Melbourne all ended up in the global top 20
unaffordable housing markets.

Beautifully, the cover of the
report contained this quote: “One of the best instincts in us is that which
induces us to have one little piece of earth with a house and a garden which is
ours; to which we can withdraw, in which we can be among our friends, into
which no stranger may come against our will.”

It’s from Ming, of course. His
successor – and would be successor – may like to ponder it.

Advertisement

We recommend

From around the web

Powered by Taboola

0 comments

Leave a comment

Advertisement

https://www.crikey.com.au/2006/01/30/housing-a-crucial-part-of-tax-reform/ == https://www.crikey.com.au/free-trial/==https://www.crikey.com.au/subscribe/

Show popup

Telling you what the others don't. FREE for 21 days.

Free Trial form on Pop Up

Free Trial form on Pop Up
  • This field is for validation purposes and should be left unchanged.