NSW landlords could be hit by changes to negative gearing

632,000 landlords across NSW could be hit if changes are made to negative gearing.

Already Mr Shorten has proposed $32 billion in new property taxes including changes to negative gearing and to capital gains tax.

“632,000 own an investment property in NSW including 375,000 who use negative gearing”, said Felicity Wilson, Acting Executive Director for the Property Council in NSW.

“Most people who buy an investment property are mums and dads who are trying to do the right thing and not be a burden on taxpayers.

“Across Australia, there are 840,000 people who negatively gear and have incomes below $80,000 a year.

“These aren’t rich people but they are using property to secure their financial future.

“We don’t want investment properties to end up like superannuation where successive governments chop and change the rules all the time.

The top ten suburbs in NSW where investors use negative gearing are:

 

1

Baulkham Hills

4,135

2

Wyong

3,794

3

Campbelltown

3,140

4

North Gosford/Erina

2,830

5

Glenwood/Stanhope Gardens

2,135

6

Epping

2,070

7

Cronulla

2,125

8

Tamworth

2,110

9

Concord/Cabarita

2,110

10

Orange

2,108

Ms Wilson said this investment was underpinning the property sector investment and jobs in NSW.

“Property is a vital part of the economy. Last year we witnessed 57,000 dwelling commencements in NSW.

“It is estimated that one third of all new residential investment – in this case 19,000 dwellings are from investors.

“The construction of a typical house includes the use of 40 trades and sub trades – and NSW can’t thumb its nose to property investment.

“If construction takes a hit then jobs will be lost and renters will be squeezed.

“During a time when the economic outlook is uncertain, the government shouldn’t play with a sector that is vital to the economy.”

Ms Wilson said it was important for property investors to let their local MP know that politicians shouldn’t play with an important part of the economy.


Media contact:
  Felicity Wilson  |  M  0410 502 980   |   E  fwilson@propertycouncil.com.au