The Finance Brokers Association of Australia (FBAA) has applauded the Prime Minister for his strong comments relating to any proposed changes to negative gearing tax.
Peter White, Chief Executive Officer of the FBAA agrees with Malcolm Turnbull who told reporters on Tuesday that any changes to negative gearing and reductions in tax concessions must “stack up economically”.
“Finance brokers can see the enormous benefits that negatively gearing a purchased property can bring for investors whether they be new or experienced in the market.”
Mr White says the association is currently involved in one-on-one talks with Assistant Treasurer Kelly O’Dwyer over a range of financial issues.
“I am sure tax reform is also on the agenda for our ongoing discussions and this could directly impact the broking industry, so this is a serious area of concern and the Government must get it right.”
The Federal Opposition has indicated it is looking at changes to the current negative gearing rules on existing homes, reducing the many concessions afforded to investment property owners.
But Mr White says the issue again distracts from the bigger hurdle of home ownership, which is “ridiculously high stamp duty costs and ongoing land restrictions”.
“It is no secret that these proposed changes would also drive rent prices up and lock potential first home buyers out of the system.”