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From Ross Gittins today:
Last week Labor announced good policies to reform negative gearing and the capital gains tax. It proposes to limit negative gearing to new housing from July 2017, with existing investments unaffected.
It would halve the capital gains tax discount to 25 per cent for assets purchased after the same date, with previous purchases unaffected.
Labor’s willingness to propose changes that the “well-off” won’t like will encourage Turnbull to do something in this area, though he’s unlikely to be as brave.
It sounds like he’s planning to put a limit on the number of homes you’re allowed to negatively gear, which would affect only a relative handful of investors.
About bloody time.
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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