Better System for Every Australian

In line with the BPA’s core ethos;

“To create a social and economic environment in which the citizens of Australia are

Occupied and are able to Prosper”

We believe that Negative Gearing of Property is a key component for a large number of Australians so they can provide an income for themselves in retirement.

Investing in Property also provides Rental Accommodation for approximately 32%* of the Australian Population and is therefore crucial.

However we also recognise that there is a small percentage of Australians that take this to the extreme in order to avoid paying tax.

One in five households (20%) owned one or more residential properties other than their usual residence. Of those that owned other residential property, almost three quarters (71%) owned a single property, while one in twenty (5%) owned four or more properties.*

Our Policy is designed to encourage ordinary Australians to invest in property but at the same time eliminate abuse of the system. The goal is to ensure that everyone pays the correct tax so everyone pays less tax.

Our Policy is as follows;

1. The legislation will not be retrospective, which means that whatever you have in place will remain unaffected
2. You can own as many “Neutrally” or “Positively Geared” Properties as you like.
3. Once Gazetted, each and every Australian will be able to claim a tax write off on two negatively Geared Properties. Each property to have a purchase price of no more than $850,000  (Indexed) giving a combined maximum value of $1.7 Million.
4. Should you already own two negatively geared properties when gazetted, then you will not be able to claim for any more, regardless of value.

Whilst it would be clear to the people of Sydney and Melbourne that $850,000 is at the lower end of the property market, this figure is quite intentional as it would encourage investment in the more affordable spectrum making more affordable rental properties available to the renting public.

These amendments ensure that normal, everyday Australians can continue to invest in Property but at the same time eliminate abuse of the system.

It is another policy by the BPA in its continuing strategy of providing affordable housing to all Australians

*4130.0 - Housing Occupancy and Costs, 2017-18 (Australian Bureau Statistics)