The Finance Brokers Association of Australia (FBAA) has come out in opposition to proposed changes to Australian negative gearing laws as recently forwarded by the Leader of the Opposition Party Mr Bill Shorten.
Speaking on the subject of budget reform, Mr Shorton has said that current negative gearing laws and the associated capital gains discount does not do enough to boost overall housing supply, and that existing policies cost Australia’s financial budget over $10 billion each year.
As part of proposed reforms to negative gearing Mr Shorten has suggested that the existing rules could be amended so that only new housing projects could take advantage of favourable negative gearing conditions.
FBAA Voices Opposition To New Proposed Changes
Mr Peter White, who acts in the position of Chief Executive of the FBAA, has come out in opposition to Mr Shorton’s proposed changes and he has also added his own personal backing to Prime Minister Malcolm Turnbull’s comments that any new changes should be both economically and financially sound.
Mr White sites current high stamp duty costs and land restrictions as being problematic, and it is his belief that any changes to the current legislation will only make things worse for home buyers and the property market.
In addition Mr White believes that the new mooted changes would in fact increase rent prices for tenants and also act to inhibit first home buyers from entering the market.
While the FBAA has spoken out on this latest negative gearing debate it is also engaged in a number of other discussions in relation to financial issues with the Australian Government and its representative Assistant Treasurer Ms. Kelly O’Dwyer.
Part of those discussions are centred around much discussed tax reform issues which if implemented will no doubt have an impact on not only the Australian mortgage and property market but also on Australian economic conditions as a whole.