Right on cue, the housing lobby has slammed the Murray Financial System Inquiry’s (FSI) recommendations to unwind negative gearing and capital gains tax (CGT) concessions. From The Age:
“The final report contends that negative gearing and capital gains tax exemptions on the family home ‘tends to encourage leveraged and speculative investment’, but it is a contention not a fact,” said Housing Industry Association chief economist Harley Dale. “Any reduction in negative gearing provisions for residential property would increase rents and lower Australian living standards. The capital gains tax exemption for the family home is an indelible part of Australia’s social fabric as well as its economic system”…
