Beyond the property market, negative gearing supports the
broader economy.
Property investment is closely linked to construction,
property management, and real estate services, which generate thousands of
jobs.
Curtailing negative gearing could reduce investment in
housing and lead to job losses in these sectors, undermining economic
stability.
It’s estimated that the construction industry directly
contributes over $360 billion to Australia’s GDP, and a decline in investor
participation would inevitably affect this sector.
Further, I have seen estimates that private rental property
providers (property investors) save the government in the order of $2 trillion
by providing accommodation that would otherwise be required to be funded by
taxpayers.
And each year, property investors pay around $45 billion in
various taxes, including stamp duty, land tax, capital gains tax and council
rates.
As I have explained, negative gearing doesn’t only apply to
property; it’s available across various asset classes, including shares and
business investments.
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Jason Gwerder
Thursday, 20 February 2025
