No change to negative gearing
FEDERAL Treasurer Wayne Swan has ruled out supporting any changes to the existing negative gearing arrangements. Opposition treasury spokesman Joe Hockey has reportedly confirmed a coalition government’s white paper on tax reform could include a look at negative gearing, which allows residential property investors to claim tax deductions when interest costs exceed rental income. ‘‘We ruled out any change to the existing arrangements in our response to the Henry (tax) report,’’ Mr Swan said.
‘‘It appears that the Liberal Party have thrown open that whole discussion.’’ Statistics from the Australian Taxation Office show that 1.2 million Australians shared a $13 billion tax break on investment properties. Mr Hockey has already said a review would look at the rate and the coverage of the GST.