Close election no mandate to change negative gearing

Wednesday, 6th Jul 2016
Categories: Market News, Newsletter

Despite the cliff-hanger election, the Labor party should review their stance on negative gearing after a recent survey revealed their policy was out of favour with Australians.

The weekend’s federal election proved to be a much closer race than many had anticipated with Labor making up significant ground from their devastating defeat in 2013 when Kevin Rudd lost to Tony Abbott.

While the Labor party will no doubt be rejoicing their revival, the fact of the matter is that many Australians don’t agree with one of their key policies – their stance on negative gearing.

Their policy, to restrict negative gearing to only newly-built properties, has been highly controversial since it was unveiled earlier this year with many industry experts, politicians and research groups canning the proposal.

Now a new survey from the Real Estate Institute of Western Australia has highlighted just how much ordinary Australians dislike the policy.

The survey was completed in the weeks leading up to the July 2 election and asked respondents a range of questions about their thoughts and circumstances on Australia’s housing markets.

Asked if negative gearing should be restricted to only newly-built properties, just 3% of respondents answered, yes.

That is a decisive view on Labor’s negative gearing policy and shows that, as it stands, it’s widely rejected by ordinary Australians.

If Labor hasn’t already got the message, then maybe these survey results will show exactly how out of touch their negative gearing policy is with the Australian public, and how desperately they need to review their stance on the issue.