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Chalmers says negative gearing will phase itself out over five to ten years
Heading over to the ABC’s News Breakfast program, Jim Chalmers says that while negative gearing tax perks won’t change for properties that people already hold, that doesn’t mean the perks will be used forever.
Typically it depends on which modelling you rely on but, between five and 10 years, typically a property will tip over from negatively geared to positively geared, and so that will phase out of the system.
The emphasis for most of the life of this government has been on building more homes and that’s still the primary focus.
These changes are contentious. There’s no use pretending otherwise but it’s the right thing to do. The easiest thing that we could have done from a political point of view would be to see these challenges in the housing market, particularly for young people, and to see the issues in the tax system and to leave everything exactly as it was. And we didn’t think that was an acceptable outcome.
One of the issues in the tax system is that it’s become out of whack. And so that new Working Australians tax offset … It’s effectively lifted the tax-free threshold for workers but not for others. And that does give us the architecture, I think, in the future, when successive governments can afford to return more bracket creep, it’s another way that we can do that.
Continue reading...Source: Guardian - World News
