Morrison won’t budge on negative gearing

Adam Smith 2 December 2016

international currency money notesTreasurers around the country are set to meet today to discuss housing affordability, but Federal Treasurer Scott Morrison has taken negative gearing off the table.

NSW Planning Minister Rob Stokes sparked controversy last week when he suggested that changes to negative gearing and capital gains tax (CGT) concessions should be part of the discussion around solving housing affordability issues.

"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 said.

But Morrison, who is set to meet today in Canberra with his state and territory counterparts, has poured cold water on the idea, saying the 30% of Australians who rent must be taken into consideration.

“I’m not about to do something which is going to jack up their rents, which was the result of negative gearing changes last time,” Morrison said, according to the AAP.

But NSW Premier Mike Baird has suggested negative gearing changes should at least be discussed.

“If there is modelling or an approach that suggests there is an impact, a positive impact, on affordable housing, well of course that’s something we should consider,” Baird said.

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