TAX REFORM

REIA advocates for negative gearing 06 May 2015 April saw our national body, REIA, focused on two key issues: negative gearing and competition policy.  Tax reform The Federal Treasurer released the long awaited Discussion Paper on Tax Reform in early April. Some of the commentary around the discussion paper related to potential changes to negative gearing arrangements.  Importantly, the discussion paper dismissed some public perceptions that negative gearing is a specific tax concession for taxpayers.  Rather it pointed out that any tax advantage for individuals investing in property does not come from gearing but from the taxation of the capital gain. This is an important point and will be reiterated by REIA in their advocacy on broader tax reform.  REIA and the Property Council will release a joint consultancy paper in the near future on the true impact of negative gearing and the important role it plays in providing much needed rental accommodation options in the private market.  Competition review The Federal Government released the final report of the Harper Review on competition policy in early April.  REIA was pleased to see the report made recommendations for the Productivity Commission to undertake an overarching review of intellectual property.  This is important for our industry as the report highlighted how intellectual property can be dominated by large corporations – for example REA’s trademark grab for ‘real estate’ – this can stifle competition and adversely impact small businesses.

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