UK negative gearing reforms further isolate Australia

The Australian Greens said today that Tony Abbott and Joe Hockey should learn a negative gearing lesson from their conservative counterparts in the UK.

"The UK's Tory government is winding back negative gearing, while Australia's Tories are too afraid to even have a conversation about the reforms," Senator Scott Ludlam, Australian Greens acting leader and housing spokesperson said today.

"As the UK reforms this counter-intuitive policy, Australia is becoming increasingly isolated and an international outlier when it comes to the subsidies handed to people investing in property, while first home buyers and low and middle income earners are locked out of the market.

"The Conservative UK government is showing much more vision than their Australian counterparts when it comes to tax reform and ensuring that our housing market is more accessible for new buyers looking to own and occupy.

"The Greens' proposal to reform negative gearing would remove the subsidy for new assets and will raise almost $2.9 billion over the 2014-15 forward estimates. We are proposing that revenue from negative gearing would be used to fund accommodation for people experiencing homelessness, dramatically cut the social housing waiting list.

"This approach has the backing of economists and a wide range of advocates. Rather than isolating our nation, the Treasurer should be putting negative gearing on the tax reform agenda," Senator Ludlam concluded.