Joe Hockey remains opposed to changes to negative gearing, saying it would lead to rent increases. He also said there was a lot of misinformation about negative gearing. He said there were more lower income earners with negatively-geared properties than high income earners and negative gearing allowed lower income earners a chance to enter the property market.
He said Australian Prudential Regulation Authority could regulate the banks to manipulate lending policies. “That is a more nuanced, a more precise way of dealing with some of the high property price issues than going down the path of having a blunt instrument that applies everywhere across the country.”