Labor’s negative gearing clawback has the potential to hit mid-range income earners in the suburbs and regions harder than “silvertails” living in wealthy inner-city electorates.
The Conservative Party will oppose Labor's proposed changes because they can't answer the hard questions about the consequences of their policies.
The Weekend Australian reports, Labor's policy, although grandfathered to allow existing investment property owners to go on receiving the tax break, will close down an important avenue of wealth creation for people of limited and moderate means.
For these investors, negative gearing is a proportionally larger part of their tax strategy than it is for the very well-off, analysis of Australian Taxation Office data shows.
The analysis also reveals that thousands of property investors in seats with modest median incomes used the tax break — and the benefit they received as a proportion of their household income was often greater than that in wealthier electorates.
This draws into question Bill Shorten’s assertion that abolishing negative gearing for all properties other than new ones to fund Labor’s spending hikes on health, education and childcare is part of a fairer tax deal for middle-income earners.
Senator Bernardi told Tom Connell on Sky News that Australian Conservatives will only agree to legislation that passes a common sense test - and a great many of Labor's policies don't.
Vote "1" Australian Conservatives on the big, white Senate ballot paper to protect our freedoms, defend our traditions and bring back common sense to Canberra.
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