I like the status quo, also, though would appreciate the states reducing SD. What is federal labor’s position? If NSW is any guide, we could be up for some less than favourable treatment if Latham wins office…does anyone know?
Federal Treasurer Peter Costello has ruled out changes to property taxes despite the Productivity Commission’s housing affordability report recommending a review of capital gains tax and negative gearing for investors. Costello said there’s no evidence that the tax system has any significant effect on house prices. The Productivity Commission report made ten recommendations but Costello accepted only those which did not relate to the Federal Government. He urged the states to take action to improve affordability, including reducing stamp duties. Costello also rejected the Commission’s recommendation to means-test the $7,000 federal first-home buyers’ grant. He has also deferred the proposed tightening of depreciation deductions for investment properties.
By Australian Financial Review, 24/6/04.
Any position this close to an election is irrelevant.
Agree. Both parties will try and bury this before the election. If the Libs are returned, don’t be surprised to hear Costello say that the Commissions findings need to be reviewed. I’m sure the ALP will do the same.
Yes I agree, though I think we should expect to at least hear Labor’s policy/thinking on this business, before the election. I tend to think they favour higher net taxation from the ‘Mum and Dad’ property investors…as in NSW Labor’s new taxes.
I also think it better, if we can challenge the strength of their commitment/statement, PRE election, as a basis to compare extent of any subsequent backflip…
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