An analysis of the residential market provides a sobering read for politicians considering changes to the tax treatment of housing.
“Over 2 million Australians own an investment property worth a total of $1.3 trillion”, says Ken Morrison, Chief Executive of the Property Council of Australia.
“These investors drive supply of low-income housing – with over 53% of all investment properties worth less than $500,000. Rents across Australia have fallen 0.2% over the past 12 months – benefiting the millions of Australians who rent.
“The Opposition has proposed radical changes to the treatment of investment properties that will raise the costs of ownership. Much of this will be passed on to tenants and will limit new investment.
“Investors are already paying stamp duty, council rates, land tax and capital gains tax. According to the ABS, Australians are paying $45 billion annually in property taxes.
“CoreLogic data also confirms that most Australians who own an investment property own just one – with an average of 1.28 rental properties per investor.”
Morrison says the report highlights that negative gearing is a vital tool for young people and middle income earners to help secure their financial future.