Bill Shorten's announcement yesterday about Labor's new policy on the treatment of negative gearing is an example of how rank-and-file members can contribute to the creation of Labor Policy.
I moved the below motion at the Lane Cove branch in June 2015. Labor's focus on negative gearing on newly constructed homes ensures first home buyers, seniors downsizing and young families will have access to housing that is affordable whilst ensuring we reward those who who take the risk to invest to help create new housing supply. There is a role for property investors to create new housing supply and this policy achieves that.
Many people who have been wanting to buy an already built property have found it difficult to secure a home purchase whilst competing with cashed up property investors. This policy now means property investors are giving back to our community by actually helping to create new housing supply - not competing with owner-occupier for homes that are already built.
Below is the motion passed at the June 2015 meeting of Lane Cove Labor: -
i. That negative gearing provisions be removed on the purchase of an already constructed residential property that has previously been lived in by either tenants or owner-occupied residents.
ii. That the following expenses not be allowed to be deducted against assessable income of a residential property owner:
a) Interest arising from loan repayments used to purchase the property.
b) Fees and charges incurred in arranging loan facilities to fund the property purchase.
c) All rental expenses including and not limited to agents fees, letting fees, council rates, strata fees, special strata levies, landlord insurance, building and contents insurance, maintenance fees.
d) All depreciation claims relating to building, fixtures and fittings.
e) Stamp duty and conveyancing costs.
iii. That the expenses mentioned in points a, b, c, d and e, be allowed to be capitalised against the cost base/purchase cost of the property and claimed as a dedication to offset any capital gain when the property is sold if the property has been held for a period of longer than ten years since date of exchange of contracts.
iv. That current negative gearing provisions be retained for the purchase of residential property “off-the-plan" or has not previously been inhabited by a tenant or owner-occupied resident.
v. That the above changes be prospective and not apply to residential investment properties already owned and where negative gearing is claimed at the time of introducing such changes.
- Motion ends-
Note: points ii and iii are not part of Labor's official policy.