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| Berejiklian was warned negative gearing was raising house prices but 'stood by in silence', Labor says | Berejiklian was warned negative gearing was raising house prices but 'stood by in silence', Labor says |
| (13 days later) | |
| The New South Wales premier, Gladys Berejiklian, was warned that negative gearing was pushing up house prices, leaked Treasury documents reportedly reveal, before she declined to challenge the federal government’s support for it. | The New South Wales premier, Gladys Berejiklian, was warned that negative gearing was pushing up house prices, leaked Treasury documents reportedly reveal, before she declined to challenge the federal government’s support for it. |
| On Thursday the Sydney Morning Herald reported that in December 2016 then-treasurer Berejiklian was advised that studies found negative gearing and capital gains tax breaks were causing “substantial distortions” in the property market and advised they should be reviewed. | On Thursday the Sydney Morning Herald reported that in December 2016 then-treasurer Berejiklian was advised that studies found negative gearing and capital gains tax breaks were causing “substantial distortions” in the property market and advised they should be reviewed. |
| The federal shadow treasurer, Chris Bowen, has seized on the revelation to claim that Berejiklian “stood by in silence” while the Turnbull government conducted a “scare campaign” about federal Labor’s proposed reforms of the tax treatment of housing. | The federal shadow treasurer, Chris Bowen, has seized on the revelation to claim that Berejiklian “stood by in silence” while the Turnbull government conducted a “scare campaign” about federal Labor’s proposed reforms of the tax treatment of housing. |
| Before the 2016 election Labor promised to restrict negative gearing to new homes and reduce the capital gains concessions on houses from 50% to 25%. | Before the 2016 election Labor promised to restrict negative gearing to new homes and reduce the capital gains concessions on houses from 50% to 25%. |
| The Turnbull government rejected the proposal, claiming it would “crash” confidence” in the economy and amounted to a “sledgehammer” to the property market. | The Turnbull government rejected the proposal, claiming it would “crash” confidence” in the economy and amounted to a “sledgehammer” to the property market. |
| The NSW government responded to the housing affordability issue with a package including planning law changes giving the Greater Sydney Commissioner power to override local councils developments and then in 2017 with stamp duty concessions for first-home buyers. | The NSW government responded to the housing affordability issue with a package including planning law changes giving the Greater Sydney Commissioner power to override local councils developments and then in 2017 with stamp duty concessions for first-home buyers. |
| But the unsigned NSW Treasury briefing reportedly advised the planning changes “are incremental and would only have a modest impact on overall housing supply [and] affordability”. | But the unsigned NSW Treasury briefing reportedly advised the planning changes “are incremental and would only have a modest impact on overall housing supply [and] affordability”. |
| “Broader supply and demand measures are required to address the root cause. | “Broader supply and demand measures are required to address the root cause. |
| “Federal government policy levers could [contribute to improving] housing affordability.” | “Federal government policy levers could [contribute to improving] housing affordability.” |
| Then-NSW premier Mike Baird and planning minister Rob Stokes put the advice into action by calling for a review of negative gearing in late 2016. | Then-NSW premier Mike Baird and planning minister Rob Stokes put the advice into action by calling for a review of negative gearing in late 2016. |
| Stokes also warned that negative gearing did nothing to improve supply where it was needed, instead allowing a “tax deduction on the ownership of a multimillion-dollar holiday homes”. | Stokes also warned that negative gearing did nothing to improve supply where it was needed, instead allowing a “tax deduction on the ownership of a multimillion-dollar holiday homes”. |
| But when Berejiklian became premier in January 2017, she stressed that negative gearing is a federal issue. | But when Berejiklian became premier in January 2017, she stressed that negative gearing is a federal issue. |
| Berejiklian told ABC’s Radio National it was not something she would “necessarily touch in relation to housing affordability” because she believed housing supply was still the biggest issue. | Berejiklian told ABC’s Radio National it was not something she would “necessarily touch in relation to housing affordability” because she believed housing supply was still the biggest issue. |
| On Thursday Bowen questioned why Berejiklian “has refused to reiterate the advice she received as NSW treasurer [and to] publicly call for reform to negative gearing”. | On Thursday Bowen questioned why Berejiklian “has refused to reiterate the advice she received as NSW treasurer [and to] publicly call for reform to negative gearing”. |
| On Monday a federal Treasury document, released under freedom of information, revealed it advised that Labor’s negative gearing policies could cut house prices in the short term but, over time, the impact will be “relatively modest”. | On Monday a federal Treasury document, released under freedom of information, revealed it advised that Labor’s negative gearing policies could cut house prices in the short term but, over time, the impact will be “relatively modest”. |
| Bowen said the document proved that the Coalition’s claims about Labor’s housing tax policies were “little more than outright lies”. | Bowen said the document proved that the Coalition’s claims about Labor’s housing tax policies were “little more than outright lies”. |
| “It doesn’t matter whether it’s the federal or NSW Liberal government – it takes the release of secret documents to get the truth on housing affordability,” he said. | “It doesn’t matter whether it’s the federal or NSW Liberal government – it takes the release of secret documents to get the truth on housing affordability,” he said. |
| “The only way to guarantee that first-home buyers are put on a level playing field is by the election of Shorten and Foley Labor governments.” | “The only way to guarantee that first-home buyers are put on a level playing field is by the election of Shorten and Foley Labor governments.” |
| The NSW Treasury briefing reportedly shows officials agreed with the state government that increasing housing supply was among the best ways to make housing affordable. | The NSW Treasury briefing reportedly shows officials agreed with the state government that increasing housing supply was among the best ways to make housing affordable. |
| But it concluded the government faced a “significant challenge” in making up for a forecast long-term shortfall of 100,000 homes despite recent record approvals. | But it concluded the government faced a “significant challenge” in making up for a forecast long-term shortfall of 100,000 homes despite recent record approvals. |
| Housing affordability | Housing affordability |
| New South Wales politics | New South Wales politics |
| New South Wales | New South Wales |
| Gladys Berejiklian | Gladys Berejiklian |
| Tax | Tax |
| Australian economy | Australian economy |
| news | news |
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