REIQ warns against changes to Negative Gearing

The Real Estate Institute of Queensland (REIQ) is alarmed by reports today suggesting that the Federal Government may be considering changes to negative gearing.

REIQ CEO Antonia Mercorella emphasised the potential repercussions of such changes, particularly in the current housing climate.

“As repeated studies have shown, there is a minimal link between negative gearing and higher house prices,” Ms Mercorella said.

“To make a major change to the rental sector during a time of low vacancy rates across Australia and long social housing waitlists could be catastrophic for the housing sector.

“It would be unwise for the Federal Government to seek to eliminate what is essentially a straightforward tax deduction for property investors.

“Abolishing negative gearing would eliminate a range of economic benefits, fail to tackle housing affordability, and impact everyday Australians the hardest.”

Ms Mercorella pointed out that abolishing or altering negative gearing could exacerbate existing pressures on the rental market, further straining households that are already grappling with rising living costs.

“It is particularly disappointing given the new Federal Housing Ministers’ statement in August that the government had no intention of changing the current negative gearing system,” she said.

“The housing market requires stability and predictability, especially in these challenging times.”

The REIQ urges the Federal Government to consider the implications of such changes and to engage in meaningful dialogue with stakeholders to ensure the sustainability of the rental market.

ENDS

Media enquiries:

Claire Ryan, Media and Stakeholder Relations Manager, The Real Estate Institute of Queensland

M: 0417 623 723 E: media@reiq.com.au

Read another REIQ media release: Take rent controls off the table.

Or browse our suite of media releases.