PHOTO: Secure Nest co-founder Joseph Skewes thinks the policy should be wound back. Source: Supplied
WHAT do negative gear-ers think of Labor’s plan to wind back negative gearing?
Around 1.3 million Australians take advantage of the popular tax break, which allows property investors to reduce their taxable income when the rental isn’t enough to cover the mortgage repayments and other costs.
Critics have blamed negative gearing for contributing to Australia’s housing affordability crisis, with investors borrowing money to speculate on rising prices while enjoying the temporary tax deductions.
The Government argues now is the worst possible time to tinker with the policy, given house prices have already started falling, and claims Labor’s plan will crash the housing market if it wins the next election.
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