Prime Minister Tony Abbott has quashed speculation over the future of negative gearing by promising there will be no changes. "Yes," was his answer when asked on Thursday whether he could rule out changes to negative gearing.
However Shadow Treasurer Chris Bowen said it would be "irresponsible" to rule out changes to negative gearing before the election.
Mr Bowen indicated that Labors policy may be that only buyers of new property may be able to access negtaive gearing benefits. He has indicated those who already hold investment property would not be effected. This also clearly seems to be the view of the government.
I think the message is if you want to take advantage of negative gearing and enjoy the tax benefits associated with property investment the time to act is now before any changes come into effect. The Federal electon is due next year so there is not a great deal of time left.
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