It’s almost that time again.
This Saturday, Australia will head back to the ballot boxes and cast their votes to decide which party will lead the country for the next four years.
Negative gearing is shaping up to be the major issue in relation to property, development and investment, with both parties sitting on opposite ends of the spectrum.
Here, we list the key issues and where the major parties stand to help inform your vote on July 2.
Liberal: Malcolm Turnbull has been selling his jobs and growth tagline, which he says he’ll achieve through a raft of measures, centering around a cut to the company tax rate - initially for small businesses, before it’s phased in for the wider business sector. The Government will also provide a personal income tax cut for middle-income earners. The upper limit will be increased for the middle tax bracket from $80,000 to $87,000.
Labor: Bill Shorten has rejected the majority of the company tax cut, instead deciding if elected, the ALP will pocket the $50 billion in savings. Labor has also said it will back a cut to the company tax rate, but only for businesses that have a turnover of less than $2 million. The ALP says it doesn’t support cutting tax for big businesses. Instead, Bill Shorten and his party say they have a 10 year plan to get the economy back in shape with the help of 100 policies.
Liberal: Has vowed not to remove or limit gearing, claiming it would increase the tax burden on Australians wanting to invest. Negative gearing is used by over 1 million Australians, two thirds of that figure have taxable incomes below $80,000.
Labor: It’s now one of the cornerstones of Labor’s policies: a promise to restrict negative gearing to new homes from July 2017. All investments made before this date will not be affected by this change and will be fully grandfathered. The real estate industry banded together to attack the policy, but the Opposition has pushed on with its plans.
Capital Gains Tax
Liberal: Won’t touch the capital gains tax
Labor: Labor will halve the capital gains discount for all assets from July 2017. This will reduce the capital gains tax discount for assets that are held longer than 12 months from the current 50 per cent to 25 per cent. The ALP says all investments made before this date will not be affected by this change and will be fully grandfathered.
Liberal: Malcolm Turnbull claims rental prices will rise if Labor is voted in and implements its negative gearing policy
Labor: no specific policy
Greens: want to set a ‘level playing field’ for landlords and renters. The Greens will introduce a Renters’ Rights package to introduce a new national minimum standard for private rental tenancies.