Tinker­ing with tax will hurt econ­omy

Southern Telegraph - - OPINION - David Rud­man Port Kennedy

Al­though largely apo­lit­i­cal and hav­ing a fair amount of dis­il­lu­sion­ment with the Lib­eral Party, I’d like to know if we can re­ally af­ford a Labor Govern­ment.

It is a ma­jor con­cern that Bill Shorten’s party plans to limit neg­a­tive gear­ing to new in­vest­ment prop­er­ties and re­duce cap­i­tal gains tax con­ces­sions.

Won't this se­verely de­plete in­vestors and push rents higher?

Data from the ATO in­di­cates 330,000 West Aus­tralians own at least one in­vest­ment property and a sig­nif­i­cant pro­por­tion (215,000) rely on neg­a­tive gear­ing to off­set losses.

An­other source es­ti­mates that na­tion­wide, 70 per cent who neg­a­tively gear own just one property and 20 per cent have two — hard­work­ing peo­ple try­ing to get ahead, hardly the top end of town.

Every Aus­tralian will feel the im­pact of any med­dling in the neg­a­tive gear­ing com­po­nent, even non-in­vestors, be­cause most of us have su­per­an­nu­a­tion and many super funds are in­vested in real es­tate.

With a de­pressed mar­ket and low property val­ues, par­tic­u­larly in WA, is it wise to vote for a party that wishes to tin­ker with tax and jeop­ar­dise the econ­omy?

Ul­ti­mately, isn’t this just an­other Labor tax grab?

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