Many of my constituents have shared with me their concerns about Labor’s plan to abolish negative gearing and increase capital gains tax by 50 per cent. And they have every right to be worried. If Labor gets these policies through, it will hurt over 35,000 households in Bonner that own their home, which will now be worth less. It will also hurt over 14,000 households in Bonner that rent, who’ll have to pay more to keep a roof over their head.
Then there are those who negative gear. Over 9000 households use negative gearing in Bonner. This is higher than the national average. The people who negative gear their properties aren’t millionaires like Labor wants you to believe. They’re teachers, nurses and firefighters. They’re people just trying to get ahead, and they stand to lose if Labor has its way.
One of my constituents put it to me very well recently. He said: “I distinctly remember Keating having to eat humble pie and reversing his decision to stop negative gearing back in the 80’s. People stopped buying investment properties, fewer houses to rent, demand for rental houses exploded, rents went through the roof, poorer people who rented got very badly hurt financially. Same thing will happen.”
Now Bill Shorten wants to implement these policies that a growing list of experts warn will have a negative impact on the economy and property market. For the sake of my constituents and 1.3 million Australians who negative gear their property, I hope he starts listening to these warnings and dumps his big new property tax.