FBAA chief executive officer Peter White says he agrees with Mr Turnbull’s comments, made last week, that any changes to negative gearing and reductions in tax concessions must “stack up economically”.
“Finance brokers can see the enormous benefits that negatively gearing a purchased property can bring for investors, whether they be new or experienced in the market,” Mr White said.
The federal opposition last week announced it was looking at changes to the current negative gearing rules on existing homes, moves that would reduce concessions afforded to investment property owners.
Mr White said the current debate on negative gearing was a distraction from the bigger hurdle of home ownership, which he described as “ridiculously high stamp duty costs and ongoing land restrictions”.
“It’s no secret that these proposed changes would also drive rent prices up and lock potential home buyers out of the system,” he said.
Mr White added that the FBAA was continuing its talks with Assistant Treasurer Kelly O’Dwyer over a number of financial matters.
“I am sure tax reform is also on the agenda for our ongoing discussions, and this could directly impact the broking industry, so this is a serious area of concern and the government must get it right.”
[Related: Flavell slams negative gearing changes]