Liberal minister breaks ranks over negative gearing
The NSW Planning Minister has contradicted his Federal colleagues by calling for cuts to negative gearing concessions.
NSW Planning Minister Rob Stokes has argued that changes to tax concessions should be put on the table in discussions about solving Sydney’s housing affordability problem, the ABC has reported. In a speech obtained by the ABC, Stokes has argued that increasing housing supply was not the sole solution to affordability.
"Earlier this year the NSW Government was ready, willing and able to have a discussion about tax. Disappointingly our leadership on this issue fell victim to the Canberra culture that promotes opposition over consensus," Stokes is set to say today in a speech to the Committee for Economic Development.
Stokes will tell the group that housing is becoming increasingly unattainable for first home buyers without parental support.
"Surely the focus of the tax system should be directed towards the type of housing we need. Why should you get a tax deduction on the ownership of a multi-million-dollar holiday home that does nothing to improve supply where it's needed? We should promote investment in the type of housing that tis needed by the burgeoning populations in cities like Sydney,” Stokes will say.
Stokes’ claims have been rubbished by Federal Minister for Revenue and Financial Services Kelly O’Dwyer, who claimed supply, rather than the removal of negative gearing, was the solution to housing affordability.