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Labor should ‘dump’ proposed negative gearing reforms, says Treasurer

Article image for Labor should ‘dump’ proposed negative gearing reforms, says Treasurer

The federal government has released new analysis which suggests voters in Labor-held electorates would be among the hardest-hit by negative gearing reforms.

The Opposition will ban investors from using the tax-break to hold on to existing properties, if it wins the next election.

Figures show the two electorates with the greatest number of investors are held by Labor.

But Labor says it won’t scrap its policy, with shadow treasurer Chris Bowen claiming the policy will save the budget $32 billion.

Treasurer Josh Frydenberg says Labor is trying to smash an already falling housing market.

“Labor’s policy will make sure that people who own their home will see the value of their home be less, and fall and if they rent their home, their rent will go up as a result of Labor’s policy.

“So it’s exactly the worst time to smash the housing market.

“Everybody who sells their home into the future, negatively geared or not, will be worse off because they’ll be less buying in the market.

“Because the Labor party is going to take away some of the tax incentives they currently get.”

Mr Frydenberg says Labor should “certainly” dump the proposed reforms.

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