Fed: ACOSS wants negative gearing frozen for a year

AAP General News (Australia)
12-19-2003
Fed: ACOSS wants negative gearing frozen for a year

The Australian Council for Social Services says negative gearing should be frozen for
a year while the Productivity Commission examines its impact on housing affordability.

A commission report recommends that high-income earners no longer receive taxpayer-funded
subsidies for their first home under an overhauled $3.8 billion assistance scheme.

In its discussion paper on first home ownership, released yesterday, the commission
also says stamp duty should be scrapped for property purchases.

It also recommends easier planning approval processes.

ACOSS criticises the commission's failure to make specific recommendations on negative
gearing, instead arguing that the issue of tax breaks for investors should be examined
more broadly.

ACOSS president ANDREW MCCALLUM says this is like saying that one can't put out the
fire in the housing market until there is a policy on fighting fires in general.

He says negative gearing is a $2 billion a year tax rort that benefits high income
earners and is inflaming the property market.

AAP RTV rmg/wz/psm/

KEYWORD: HOUSING (CANBERRA)

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