Nothing in Federal Budget for first home buyers
Homeowners and investors have got nothing in the Federal Budget, though no negative tax changes for homes either.
While superannuation cuts targeting high-income earners and small personal income cuts have been scheduled, the rules relating to negative gearing and capital gains tax will not be changed, Treasurer Scott Morrison confirmed in his Budget speech on Tuesday evening.
Mr Morrison said they will not “remove or limit negative gearing – that would increase the tax burden on Australians just trying to invest and provide a future for their families”.
“Those earning less than $80,000 a year in taxable income make up two-thirds of those who use negative gearing,” he said.
“We do not consider that taxing these Australians more on their investments, including increasing their capital gains tax, and undermining the value of their own home and investments is a plan for jobs and growth.”
LJ Hooker head of research Mathew Tiller said “one of the most positive things is what is not in [the Budget] … the fact they’re not going to touch negative gearing or capital gains tax was flagged early on in the piece but it’s good to see”.
