Investors and the Election Result

Australians went to the ballot box on Saturday and voted to maintain the status quo and in doing so gave a definitive no to the Labor Party’s suite of new taxes and policies, amongst them the increase to capital gains tax and the abolition of negative gearing for existing homes purchased after 1 January 2020.
This is good news for investors, be they from the ‘big end of town’or ‘mum and dad’ investors in that interest and other expenses relating to the rental property can continue to be offset not just against income from the property itself, but also from other income
sources, potentially decreasing total taxable income.

And when it may come time to sell, the tax payable on any gain made will remain at either 0%, 10% or 15% depending on your total income level, therefore maintaining the 50% discount which was introduced in 1999.

This is good news also for tenants, as many property analysts saw the proposed changes resulting in significant increases to asking rentals, to cover any shortfall caused by the removal of these concessions.

Robust competition from all elements in the market place - first home buyers, investors, developers, upsizers and downsizers should ensure that the property market here in Geelong remains strong and buoyant.

Until next week,
Nick Lord