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Category: Government and Politics / Federal Government / Housing Industry / Business, Economics and Finance

Row erupts over BIS Shrapnel negative gearing claims

Thursday, 3 Mar 2016 05:45:02 | Stephanie Anderson

Treasurer Scott Morrison speaks at a press conference at Parliament House on March 2, 2016. (ABC: Tim Stevens)

The Federal Government has attacked Labor's negative gearing plans, following research from BIS Shrapnel which warned rental prices could increase and house prices could drop if negative gearing was limited.

Fact Check: Negative gearing


ABC Fact Check investigates Scott Morrison's claim that the vast majority of Australians who use negative gearing earn "modest" incomes.

BIS Shrapnel has refused to say who commissioned the research but said the modelling was done over several months and was not focussed on any particular policy.

Treasurer Scott Morrison said he did not know who commissioned the report, stating: "We didn't do this modelling".

But he told the ABC the report was proof Labor's plan was flawed.

"It is a credible report and it shows what we said what would happen with Labor's policy," he said.

"It would have a significant impact on property values, it's going to push many people into housing stress. It's going to require compensation of hundreds of millions of dollars, more than is actually raised by the policy itself."

Mr Morrison also denied reports in Fairfax Media that the Government had decided to dump any proposal to change negative gearing, saying the Government was still finalising its plans.

Shadow Treasurer Chris Bowen slammed the "so-called analysis" this morning.

Mr Bowen said Labor stood by its policy in the wake of the report.

"This analysis should be treated with all the credibility of an email from Godwin Grech," he said.

"It's been commissioned by somebody anonymous, somebody who doesn't want to put their name to it. Well, anybody in this debate who wants to commission, pay money for modelling or analysis and then not put their name to it because they're too embarrassed by it needs to think about their approach."

Kim Hawtrey from BIS Shrapnel told the ABC the report was done over the last few months, "before Labor even announced its policy".

"We weren't thinking of any particular policy from any side of politics," he said.

"We were really trying to consider as set of likely assumptions that somebody might propose."

Mr Hawtrey said the paper was not making recommendations.

The Property Council and the Real Estate Institute of Australia have both confirmed that they did not commission the modelling from BIS Shrapnel.

AustraliaPlus


 

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