Negative Gearing and Property Council

investment properties: Key points:Labor wants to restrict negative gearing to new properties from mid-2017Negative gearing is a "big issue" in Lyons, Liberal member says Property Council says it is a significant risk to Tasmania economy Not many of the homes real estate agent Karen Young sells are used as investment properties to potentially be negatively geared. "A lot of people that have got their first home want to get an investment property, but negative gearing isn't that high on their priority," she said, according to Australian Broadcasting Corporation. The federal Labor Party wants to restrict negative gearing to new properties from mid-2017. Related Story: Dutton says 'stock market will crash' under Labor tax policies Related Story: Shorten unveils negative gearing changes to 'level housing playing field'Related Story: Assistant Treasurer appears to contradict PM on negative gearing Map: TAS The Liberal-held electorates of Bass, Braddon and Lyons, as well as the Labor-held electorate of Franklin, belong to the 20 parts of Australia that benefit least from negative gearing, a report from the Australia Institute says. Its candidate for Lyons, Brian Mitchell, said he believed that despite the low statistics for negative gearing in the area, the policy would be a winner. "Investors are pushing home owners out of the market, it fair to say that probably hasn't happened that much in Tasmania as it has on the mainland," he said. "But it still a very important issue because we need to repair the budget." Liberal Member for Lyons, Eric Hutchinson, said that despite the report, negative gearing was a big issue in his electorate. There will be less populist resistance to Labor policy here' Richard Eccleston, a political analyst from the University of Tasmania, said the onus was on Labor to explain its plan to the public. "I guess there will be less populist resistance to Labor policy here in Tasmania," he said. "I guess the real challenge for the Labor Party is to explain why they're introducing this change. He said he was far from sold with the Opposition plan. "This tax is a tax on growth, it is a tax on mums and dads, it is a tax on the family home and it shouldn't be accepted," he said. "The last thing we need is a taxation proposal like the Labor Party are putting forward." The Property Council Brian Wightman said he remained of the view that change to negative gearing was a significant risk to the economy. "Thirty-one thousand people have investment properties in Tasmania, including 18,000 who negatively gear, and while that not a huge take-up it is part of a national conversation about tax reform," he said. (news.financializer.com). As reported in the news.