Deputy Liberal leader Jane Hume has called a proposal to limit negative gearing to two investment properties “ridiculous”.
“Why is it that every single problem that Australia has today can be solved by Labor through taxing it? This is ridiculous. If you tax something, you get less of it,” Hume told Sunrise.
Deputy leader of the Liberals, Jane Hume.Alex Ellinghausen
Treasury is modelling the measure as an option for reform in the May budget, according to The Australian.
“If I’m a landlord and you tax me more, I’m going to push the rents up,” she said. Asked about the argument that limiting negative gearing – an incentive that allows investors to offset property costs against income – would free up housing supply for first home buyers, Hume said increasing supply by building more homes was the answer.
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“We all know that supply is the problem in housing. It’s not how much you’re taxed. And all this… flying of kites around this tax, and that tax – this is just Labor paving the way to increase taxes on Australians,” she said.
Health Minister Mark Butler would not weigh in on how seriously the reform was being considered, but reiterated the government was committed to levelling the playing field for younger Australians.
“As we head into the 10 weeks leading into the budget, there’s a veritable tsunami of articles speculating about what we might or might not be considering,” he said, appearing alongside Hume on Sunrise.
“We’ve been very clear about our tax policies. We’ve been clear about our housing policies… but we’ve also been clear that we think there is an issue around young Australians going to a fair break, breaking into the housing system.”