A building and real estate industry forum at Wests League Club in Leumeah was told that there are nurses, police officers and teachers among 6,069 Macarthur residents who are using negative gearing.
The forum was attended by the federal minister for small business and assistant treasurer Kelly O’Dwyer.
Also in attendance was federal member for Macarthur Russell Matheson.
“The forum highlighted the disastrous local economic consequences of Labor’s new and increased taxes on housing,” Ms O’Dwyer said.
“Local small businesses, including builders and real estate agents from Campbelltown, Ingleburn and throughout Macarthur said Labor’s changes will hit middle income Australians, making it harder for them to get their foot on the property ladder, and will lead to rents rising.”
Mr Matheson said: “I don’t want to see hardworking people from Macarthur lose their jobs and families suffer because Labor wants to impose bans on negative gearing that will restrict low and middle-income earners from investing in established properties.
“In Macarthur, those who are negatively gearing have an average net rental loss of $7,207.
“If they weren’t able to negatively gear, those on the middle income tax bracket of 32.5c would face an annual tax increase of $2,342.
[social_quote duplicate=”no” align=”default”]“In addition, these people will have to compete with larger numbers of wealthy investors for a much smaller pool of new housing stock, crowding them out of the opportunity they have right now.[/social_quote]
“It is about time Bill Shorten and Labor explained to each of these 6,069 individuals in Macarthur why they think building some modest wealth for their families is so deplorable.”
Most middle income earners are investing in established housing, which Labor wants to ban, he says.
Mr Matheson says also that Labor’s proposal will take up to one third of buyers out of the housing market, which will reduce the value of homes.
“Driving down the value of the most important asset for most Australians is not a strategy for economic growth and enhanced prosperity for the Australian community,’’ he said.
The evidence is that the previous growth in housing prices has moderated and that housing affordability across Australia is improving.
