The Australian government aims to improve the ability of young Australians to own a home by implementing housing tax changes. The changes include winding back demand through negative gearing and capital gains tax, which will be grandfathered for existing investors.
SYDNEY: Australia 's centre-left Labor government will pare tax breaks for landlords as a way to help improve the ability of young Australia ns to own a home, in the biggest housing tax changes the country has seen this century.
Because the changes to negative gearing and capital gains tax will be grandfathered for existing investors, economists expect the initial impact on house prices and rents to be modest. The Commonwealth Bank of Australia expects house prices to rise three per cent this year, down from a previous forecast of five per cent. Here is what some young voters, investors, and real estate agents are saying as Treasurer Jim Chalmers handed down his fifth federal budget on Tuesday .
"This ends 25 years of the federal government trying to fix housing by pumping up demand, and they're recognising that you don't put out a fire by pouring more petrol onto it. "We support the policies to wind back demand. We especially support that they're taking that money and they're putting it back into supply.
""I definitely support the changes to capital gains and negative gearing. I think for too long the way that tax has been set up in this country massively benefits those who already have wealth, those who already have assets, those who already own homes, those who are already investing.
"For me, the housing changes are the much more important thing because, yes, of course I invest in shares, but I care a lot more about housing. Because for me, that's where my future is - wanting to own a home and wanting to raise a family.
""There is a genuine risk that many investors decide to cash in their gains at the same time, only to discover that everyone else has had the same idea. "There is a material risk of wiping out billions of dollars of value off tens of thousands of homeowners' and investors' properties in these regional markets. That is a significant unintended consequence no government will want to happen on their watch if it materialises.
" JACK HENDERSON, A PROPERTY INVESTOR WHO OWNS THE MAJORITY OF HIS 17 PROPERTIES IN A COMPANY STRUCTURE "It doesn't really affect someone like me, because negative gearing and capital gains tax are two things that are only applicable if you own property in your personal name. It is not going to change anything for us outside of a slight tweak to our strategy to make sure that we're still absolutely getting every benefit that we can.
"I think it is a tax grab, absolutely. You know, they understand that they've dug themselves a trillion-dollar hole. And they need to dig themselves out of it. But instead of incentivising productivity, they're trying to tax the people that have the most amount of money.
""We are seeing more investors . That's not just related to the budget. I think that's also related to the change in tenancy laws making it more challenging to be an investor.
"I think there's a lot of downward pressure on prices at the moment. If I had to bet, I would say I think prices will ease in the next two quarters. Normally the things that change the market for the better are a change in government or lowering of interest rates. And I don't think we're getting either of those this year.
" - ReutersHeat index at Imus City in Philippines soars to dangerous 46.9�CQuang Ninh gives nod to first offshore wind power plant in Vietnam
Australia Labor Government Housing Tax Changes Negative Gearing Capital Gains Tax Young Australians Home Ownership Property Investors Real Estate Agents
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Government Considers Slashing Budi95 Quota To 150L As Subsidy Costs RisePrime Minister Datuk Seri Anwar Ibrahim previously announced a proposal that could potentially cut T20 income earners from subsidised fuel altogether.
Read more »
Goodbye long queues, hello couch: Malaysia’s government offices now fit in your phoneKUALA LUMPUR, May 13 — For decades, a trip to a government office in Malaysia was a test of endurance.It meant taking time off work, navigating traffic to reach administrative...
Read more »
Samsung Electronics, S. Korean labor union fail to reach pay deal, strike loomsOil prices settled higher for the third consecutive session on Tuesday as stark differences between the US and Iran over a proposal to end the war in the Middle East raised concerns that supply disruptions upending the global oil market are likely to be prolonged.
Read more »
Singapore committee urges government to attract top AI firms and talentSINGAPORE, May 13 — Singapore must take action to attract leading AI firms and also build on its status as a major energy hub, a committee set up to chart new areas of...
Read more »