The conga line of industry players and ‘experts’ calling for a review of Australia’s property tax rules has just expanded, with CBA chief, Ian Narev, calling for a review of negative gearing. From Domain:
“This is one of the things that needs to be looked at broadly as part of the overall tax review,” he said.
Mr Narev said negative gearing undoubtedly had an impact on the housing market by boosting demand from investors…
However, he said the concession should not be looked at in isolation.
“In the structure of the Australian property market, where you have a high degree of investor borrowing… undoubtedly negative gearing is a factor,” he said.
“But I think its dangerous to say `and therefore, solely because of that reason, we should do something about negative gearing’.”
Narev, of course, follows the RBA, the Murray Financial System Inquiry, Audit Commission chair Tony Shepherd, and the Australian Treasury in calling for a review of Australia’s property tax rules (i.e. negative gearing and/or the CGT discount).
All of which makes the Abbott Government’s blanket refusal to consider reform as part of its tax review process all the more perplexing.
Chalk this up as another lost opportunity courtesy of the Abbottalypse.
