Housing industry body warns against potential negative gearing changes

The Real Estate Institute of Queensland (REIQ) has expressed concern over reports suggesting the Federal Government may be considering changes to negative gearing.

REIQ CEO Antonia Mercorella highlighted the potential consequences of such changes in the current housing climate.

“As repeated studies have shown, there is a minimal link between negative gearing and higher house prices,” Ms Mercorella said.

She warned that altering the rental sector during a time of low vacancy rates and long social housing waitlists could have severe implications for the housing sector.

“It would be unwise for the Federal Government to seek to eliminate what is essentially a straightforward tax deduction for property investors,” Ms Mercorella said.

The REIQ chief argued that abolishing negative gearing could eliminate economic benefits, fail to address housing affordability, and impact everyday Australians the hardest.

Ms Mercorella suggested that changes to negative gearing could worsen existing pressures on the rental market, further straining households already dealing with rising living costs.

She expressed disappointment over the potential policy shift, noting the Federal Housing Minister’s August statement indicating no intention to change the current negative gearing system.

“The housing market requires stability and predictability, especially in these challenging times,” Ms Mercorella said.

The REIQ has called on the Federal Government to consider the implications of such changes and engage in meaningful dialogue with stakeholders to ensure the sustainability of the rental market.