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The government’s proposed reforms to negative gearing and capital gains tax have triggered a 20 per cent fall in Westpac’s housing investor loan applications over the past three weeks, with the head of consumer banking Carolyn McCann warning there is widespread community concern about the changes.
The federal budget revealed a minimum 30 per cent tax on capital gains to be imposed from July 2027 and the abolition of negative gearing for existing properties. Both changes rattled investors and caused a slide in auction clearance rates and house prices in Melbourne and Sydney.
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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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