Around 2 Million property investors around Australia that used negative gearing last year, would find great relief this week to hear our Prime Minister Julia Gillard will not remove the Negative gearing tax breaks for property investors . Adding to this news on top of the already low interest rates, great rental returns and higher yields, will create even more confidence in the market place.
Gillard says her government has ruled out removing the tax break. It was in response to a question asked on the ABC’s Q&A program. “We didn’t agree with the Henry Tax Review,” Gillard said, “We think that an abolition of negative gearing will cause distortions to the property market that we did not want to see,” she said.
The federal opposition also appears loath to remove the tax break, with Coalition spokesman Joe Hockey tweeting after the broadcast that negative gearing “holds down rents... just ask Bob Hawke and Paul Keating. They tried to get rid of it and reversed their policy.”
Gillard says her government has ruled out removing the tax break. It was in response to a question asked on the ABC’s Q&A program. “We didn’t agree with the Henry Tax Review,” Gillard said, “We think that an abolition of negative gearing will cause distortions to the property market that we did not want to see,” she said.
The federal opposition also appears loath to remove the tax break, with Coalition spokesman Joe Hockey tweeting after the broadcast that negative gearing “holds down rents... just ask Bob Hawke and Paul Keating. They tried to get rid of it and reversed their policy.”