It was noted that negative gearing is not a special concession for property. It is a legitimate deduction of expenses in the course of earning income from investments in all asset classes (including shares, other investments and business ventures) until the investment generates a positive income stream in the future. The ability of investors to gear and use debt is a crucial part of investing and fostering economic growth. The ability to deduct the cost of debt and losses against income is necessary to ensure that investments are not taxed punitively.

Similarly, the 50 per cent discount on capital gains replaces the previous indexation of capital gains which was put in place to ensure that only real capital gains are taxed – the change being made for administrative ease – and is also applicable to all asset classes.

The ACIL report dispelled the myths that have gained currency and showed that negative gearing and the capital gains arrangements are helping to boost the supply of new homes, put downward pressure on prices, keep rents lower and give ordinary Australians a better chance of entering the property market which in many cases supplements savings for retirement purposes.

It is for the reasons of addressing the popular arguments and the hope that the debate during the election campaign will be based on rational thinking and not perpetuating myths that simply do not hold up to analysis that REIA has become involved during this election.

REIA has employed digital methodologies to dispel the myths surrounding negative gearing and drawing attention to the potential economic impacts of changes to negative gearing.

Daily Facebook messaging and Tweets started the week beginning 9 May, just after the election was called, utilising REIA’s contact base together with boosting the posts by targeting customised audiences including marginal seats. Over the duration of the campaign the numbers reached has increased some thirty fold. The numbers registering likes and engaging in the content by posting comments or sharing the posts to their own pages has also increased markedly.

The largest audiences are women between 35 and 44 years old and men 25 to 34. Whilst there have been some negative responses the overwhelming response has been positive. Despite the increased volumes in recent weeks the negative responses have all but disappeared. Perhaps unexpectedly, much of the negative response has come from men in older age groups. You can view REIA’s messaging at REIA’s Facebook page.

REIA has also joined with all the Real Estate Institutes in Australia and 19 of the major agency groups in Australia to launch a website. The website addresses the issue from the perspective of a home buyer, a renter, an investor and an economic impact.

Since the website was launched all the groups involved have used their own data bases and publications to share the material. Again, not dissimilar to REIA’s findings, the response has generally been positive. The negative response has been largely from renters and first home buyers and has generally been on a political alignment.