The Coalition and Labor have markedly different housing policy heading in to the federal election
It is one area where the policies of the Coalition and Labor are markedly different.
If a $500,000 property dropped 10 per cent to $450,000, the buyer would still need a deposit of at least $45,000, plus the income to service a debt of about $420,000, when mortgage insurance is taken into account. Under the current Labor proposals, as I understand them, any losses cannot be offset against future taxable income, but will be added to the base cost to reduce capital gains tax on the property when it is eventually sold.Labour is using a 2016 report from the Grattan Institute to support its case.
My modelling demonstrated that the Keating proposals were not really too tough and should not put anybody off acquiring an investment property. If the government wants to increase revenue, it seems self-defeating to encourage investors towards new properties, where tax deductions are maximised.Political parties of all persuasion should understand some fundamental truths about the property market.
But it’s a paradox. An asset bought before the change will be worth more than one bought after the change, for tax purposes.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
'Completely impractical': Coalition and Labor at loggerheads over suitability of Christmas IslandLabor's Tony Burke says Christmas Island is unlikely to provide necessary medical treatment but minister Simon Birmingham says the government will make sure it does.
Read more »
Coalition and Labor commit to $170 million for heart checksWith one Australian dying of cardiovascular disease every 12 minutes, the National Heart Foundation and the Australian Medical Association have welcomed the Coalition and Labor's commitment auspol
Read more »
Why Labor's housing policy is self-defeating, fraught with perilThe Coalition and Labor have markedly different housing policy heading in to the federal election.
Read more »
Labor giving ‘mixed signals’ on Christmas Island stance | Sky News AustraliaSky News host Chris Kenny says Labor has been giving ‘mixed signals’ on crucial issues facing the country, including its Christmas Island and border protection stance. \n\nMr Kenny says it’s unclear whether or not the party supports the decision to send asylum seekers to Christmas Island for medical treatment under the medivac legislation. \n\nMr Kenny says Labor is ‘every which way but loose’ when it comes to border protection, ‘wanting to run from it’ while the government will be wanting to talk about it. \n\nImage: News Corp Australia\n\n\n\n\n\n
Read more »