NSW LIBERAL PLANNING MINISTER STOKES TELLS THE TRUTH ON NEGATIVE GEARING REFORM

28 Nov 2016

NSW Planning Minister Rob Stokes is correct. Malcom Turnbull and Scott Morrison are 'dashing the dreams' of people trying to buy their first homes.

NSW LIBERAL PLANNING MINISTER STOKES TELLS THE TRUTH ON NEGATIVE GEARING REFORM

 

NSW Planning Minister Rob Stokes is correct. Malcom Turnbull and Scott Morrison are 'dashing the dreams' of people trying to buy their first homes.

 

Minister Stokes today said:

 

“It is now time for the federal government to articulate how they will partner with the states in order to use the levers available to them to help more Australian families into stable and secure housing.

 

“The premise that the more you supply of a product, it therefore increases the competition and reduces prices, is great in theory but in relation to the housing market it is much more complex.

 

“We should not be content to live in a society where it’s easy for one person to reduce their taxable contribution to schools, hospitals and other critical government ­services — through generous federal tax exemptions and the ownership of multiple properties — while a generation of working Australians find it increasingly difficult to buy one property to call home.” 

 

This isn’t about what a NSW Liberal Minister said or what a Federal Liberal Minister said or what a Labor MP said – it’s just common sense.

 

Minister Stokes is right – negative gearing does need urgent reform.

 

He joins the like of CEDA, the IMF, Jeff Kennett, Joe Hockey and dozens of eminent Australian economists who have argued for the need for reform to negative gearing.

 

The housing affordability crisis does need a coordinated policy approach across different levels of government, but that starts with a Federal Government who is willing to use the levers at its disposal.

 

The fact is, Australia has among the most generous property tax concessions for investors in the world and young first home buyers are no match for investors at an auction looking for their fifth, sixth or seventh investment property.

 

Labor's policy is the right one - a careful, fully grandfathered, prospective reform that will end the distortion of the housing market in favour of speculators, and even the playing field for new buyers.

 

In contrast, we’ve got a Turnbull Government paralysed and incapable of improving housing affordability.

 

We have seen Scott Morrison, over the last 12 months, argue there were “excesses” with negative gearing, then attack Labor’s plan to reform negative gearing, then go to Cabinet with his own reform plan and get rolled by the Abbott forces, but today we discovered that he actually has no idea what negative gearing is.

 

And since the 2013 election, the Coalition have actively made housing affordability worse. No Federal Minister for Housing and Homelessness has been appointed, and there is no national housing affordability plan being implemented. The Coalition have also abolished the National Housing Supply Council. The Coalition also shut down the National Rental Affordability Scheme that provided over 20,000 new affordable housing units and was on track to achieve its target of 50,000.

 

The Turnbull Government is hopelessly distracted and divided. It is unwilling and unable to address the urgent housing affordability crisis which imposes high social and economic costs on the entire community.

 

FRIDAY, 25 NOVEMBER 2016