MPs warned not to touch negative gearing

In the Australian Financial Review today an article by Phillip Correy highlights that MPs are being warned that marginal seats will be vulnerable if they don’t leave negative gearing alone.

The warning comes from the Property Council. The group is currently compiling data to show the political parties how many voters will be affected by any changes to negative gearing, especially in marginal seats.

The data will be presented as part of the Property Council's submission to an inquiry into tax deductibility being held by parliament's joint standing committee on economics.

The Property Council chief executive officer Ken Morrison said: “My message to politicians is don't think grandfathering any changes will not upset these investors. Grandfathering simply locks these people into holding the properties they currently have. It will stifle turnover and make these people angry," he said.

The Property Council will also argue that the negative gearing "keeps a lid on rental costs and house prices".

The full report will be released shortly and we look to reviewing the other points that are put forward.

The article can be viewed here:

http://www.afr.com/news/property-lobby-threatens-mps-over-negative-gearing-20160203-gmlaz3