2016-02-18
Grattan Institute research has found that the wealthiest Western Australians exploit negative gearing more than anyone else in the country. This has led to first home buyers being locked out of the market or forced to the periphery of urban sprawl, the Australian Greens said today.
"WA is 'leading' the exploitation of negative gearing. A higher proportion of Western Australians negatively gear. WA investors claim a greater average loss. A greater proportion of the benefits of negative gearing flows to the very rich in WA. And high income earners in WA are more likely to negatively gear than anywhere else in the country," Australian Greens Deputy Leader and Housing Spokesperson Senator Scott Ludlam said today.
"Perth house prices almost tripled over the course of the mining boom, shutting out lower income earners, all while a huge majority of WA taxpayers are subsidising the investments of some of the wealthiest people.
"First home buyers in WA deserve better. Our taxation system should be geared towards making it easier for new entrants in to the market, not harder. This data shows that a quarter of people earning more than $150000 a year are having their income subsidised by other Western Australians. This is unfair, by any measure, and it has to stop.
"The sooner Liberal governments adopt the Greens proposals on negative gearing reform, the sooner these imbalances will be addressed and the sooner fairness can be restored to the WA housing market.