Barnaby Joyce has revealed One Nation would limit negative gearing tax deductions to two properties, with the proposed restrictions also applying to existing investments.
The One Nation MP outlined the policy during an interview with News24 host Andrew Clennell on Tuesday afternoon.
“We would have a limit on the number of houses” people could negatively gear, he said.
Mr Joyce said the limit would be two, including existing purchases.
“Below two purchases, you’re still able to negatively gear it,” he said.
“We think it’s reasonable that you do something prudent and get yourself a house as an investment.
“If you’re lucky, you get two. But if you’ve got 20, no, no. That’s not part of the game.”
Negative gearing looms as a key issue for next year’s election, as Labor’s broken promise on changes to it caused massive upheaval in the real estate industry.
In August, the Commonwealth Bank of Australia noted that home loan applications were down 15 per cent since budget night.
Westpac earlier that month told investors that new mortgage applications were down 20 per cent.
NAB was the first major bank to reveal a fall in mortgage applications, down 15 per cent in the three months to the end of June.
In July, Master Builders Australia CEO Denita Wawn warned Labor’s changes could lead to Australia falling behind its new build target.
“There’s real concerns about the compounding impact of those announcements during the federal budget on creating a softer market for building and construction at a time when we can least afford it,” Ms Wawn told News 24 Business Now.
“We’ve got grave concerns that we’re going to fall well short and certainly we’ve got early indications … that we will be even further behind in achieving that 1.2 million (target).”
Read related topics:Rise of One NationNew England MP Barnaby Joyce