Already a subscriber?Changes to negative gearing rules or capital gains tax concessions would further slow badly needed housing supply and hurt residential construction, builders have told the federal government.
Before pandemic shutdowns, the average construction for new homes took about nine months. Master Builders says that timeframe blew out to about 15 months during the pandemic period, and is currently about 13 months. “If you change any investor parameters, you will thwart investment in the industry, and therefore, thwart supply.
These negatively geared investors claimed rental losses of $7.8 billion, providing a tax benefit of $2.7 billion in 2020-21.Treasury’s tax expenditures statement said 80 per cent of the tax reductions for landlords went to people with an above-median income in 2020-21. Some 37 per cent went to the top 10 per cent of taxpayers, while about 15 per cent went to the bottom 10 per cent.