No changes to negative gearing
This was the Prime Minister’s unequivocal response when asked whether he could rule out any changes to negative gearing in Australia.
As far as statements go this was pretty definitive and it provides a level of certainty to the 36,000 nurses, 54,000 teachers and 62,000 clerical staff who negatively geared a property in the 2012 Financial Year.
So for them, the Prime Minister’s one word declaration last week is welcome news.
But we still have a long way to go in the tax debate, and the stakes are high.
Almost 700,000 average Australian workers earning around $80,000 or less used negative gearing to get a foot in the door of the property market, save for their retirement and in the process, boosted the supply of housing stock.
It has spin offs for other professions too.
For the carpenters, electricians, plumbers and gardeners, to name just a few, who do the repairs and maintenance on in investment property.
The bottom line? Negative gearing is a positive for Australia.