Labor to end negative gearing concessions for new investors
The Government has announced it will scrap negative gearing concessions for new buyers and will stop the practice, known as "graft," in all state and territory financial institutions.
The changes, announced in the March budget, come against a backdrop of continued pressure on the banking sector from a widening housing supply glut and a growing number of capital inflows.
The changes, which will apply retroactively, will give financial institutions an incentive to promote a market-oriented approach to mortgage lending, the Government's budget documents reveal.
They have been criticised by leading advocates of the industry, including the Reserve Bank of Australia, because they will increase the cost of borrowing for many of the lenders currently involved in the industry.
Mr Morrison said the Government's aim was to keep the property market "fiscally stable", but admitted he had received concerns from the industry regarding the changes.
The원나잇 changes include the end of negati온라인 카지노ve gearing concessions for new owners, which the Government was calling for under a program that it announced this summer that would extend the tax concession period for investors and make it easier for new investors to refinance their loans if a property became unsellable.
The Government's first budget, announced this week, also confirmed that existing investors who purchased or built properties between 2007 and 2011 would receive a $3,000 rebate in addition to the $20,000 capital gains tax they currently receive.
"The Government will no longer allow banks and non-financial enterprises to charge excessive interest rates or to use deductions or loopholes to reduce property values for many, many of us, who are paying the price for the reckless hous네이버 룰렛ing boom and bust," said Mr Morrison.
"As I've made clear, this Government does not believe that these measures are sufficient to keep our system of credit stable, sustainable and sound.
"Our Government is confident the changes to negative gearing rules will benefit tens of thousands of property investors across Australia who now face enormous cost and capital pressures.
"We are making changes to capital gains tax, so that our existing housing market will work for the long term, not for an uncertain future."
Mr Morrison said some banks could continue to allow investors to pay excessive interest rates, but the changes mean lenders are not obliged to charge them. The Government will also give a rebate to new owners for up to two years if they build an investment property on their own.
The Treasurer said the changes were designed to help the existing investors and they "will ensure they are properl