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‘A desperate cash grab’: Treasurer slams Labor’s proposed negative gearing reforms

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Treasurer Josh Frydenberg has slammed Labor’s proposed reforms to negative gearing as “a desperate cash grab”.

Labor is proposing to ban investors from applying the tax break to existing properties, if it wins the next election.

It would also double the amount of tax people pay on the profits from the sale of a property.

Scott Morrison told Alan Jones this morning the policy doesn’t make sense.

Treasurer Josh Frydenberg tells Ross Greenwood Labor is spending recklessly.

“The Labor Party make reckless spending promises that are based on $200 billion of new taxes.

“All your listeners who are either in retirement or headed for retirement will be slugged with the retiree tax.

“All who are homeowners or indeed renters will be slugged with a new property tax.

“When they sell their property, they’ll be selling it into a market with fewer buyers, but so too so will every Australian who currently owns their home.”

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The Treasurer says it means homeowners will see the value of their properties “worth less under Labor’s policy”.

“And for those Australians who rent, they’ll also see their rents go up.”

Mr Frydenberg says if Labor’s proposed changes to capital gains tax and negative gearing are brought in, it will “dramatically” accelerate falling house prices.

“This policy is a desperate cash grab in order to fund their reckless promises.

“They’re going to hurt every Australian who has equity in their home, and every Australian who rents their own home.”