NEG­A­TIVE GEAR­ING BACKED

Southern Gazette (South Perth) - - RESIDENTIAL -

A RE­CENT sur­vey of WA prop­erty in­vestors found 72 per cent of re­spon­dents neg­a­tively gear their in­vest­ment prop­er­ties.

The Real Estate In­sti­tute of Western Aus­tralia sur­vey also re­vealed that of those in­vestors who neg­a­tively gear, 76 per cent owned just one or two in­vest­ment prop­er­ties, which REIWA pres­i­dent Hay­den Groves said in­di­cated the ma­jor­ity of in­vestors were ev­ery­day West Aus­tralians with small prop­erty port­fo­lios.

The REIWA sur­vey also re­vealed more than half the re­spon­dents earned a gross salary of less than $100,000, fur­ther high­light­ing that neg­a­tive gear­ing is a tax ar­range­ment that pro­vides ben­e­fit to low and mid­dle-in­come earn­ers across WA.

“These re­sults show us that prop­erty in­vest­ment is for ev­ery­one and pro­vides an op­por­tu­nity for all West Aus­tralians to se­cure their fu­ture,” Mr Groves said.

As part of the sur­vey, in­vestors were also asked what in­dus­try they worked in.

Busi­ness and hu­man re­source was the most com­mon re­sponse from the sam­ple size of 352 re­spon­dents, with 23 per cent of re­spon­dents se­lect­ing this in­dus­try group.

The top five in­dus­try groups in WA whose em­ploy­ees in­vest in prop­erty were: 1. Busi­ness and hu­man re­sources: 23 per cent 2. Mining and en­gi­neer­ing: 17 per cent 3. Con­struc­tion and build­ing: 13 per cent 4. Health, ed­u­ca­tion, so­cial and wel­fare: 11 per cent 5. Pub­lic ser­vice: 11 per cent.

Mr Groves said the find­ings de­bunked the myth that prop­erty in­vest­ment and neg­a­tive gear­ing only as­sisted the wealthy.

“We can see that West Aus­tralians em­ployed across a whole range of in­dus­tries neg­a­tively gear their in­vest­ment prop­erty,” Mr Groves said.

“We hope these find­ings pro­vide fur­ther in­sight into why we want neg­a­tive gear­ing to be re­tained in its cur­rent form or, al­ter­na­tively, a re­view of the en­tire tax sys­tem be car­ried out.

“The pro­posed changes to neg­a­tive gear­ing will have an im­pact on the ev­ery­day West Aussies who are try­ing to get ahead.”

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.