The 2015-16 Budget has been welcomed by the Real Estate Institute of Australia as a win for small business and one that importantly retains key tax arrangements that benefit housing investment.

In the REIA’s response to the Federal Budget, CEO Amanda Lynch congratulated the Treasurer on listening to the sector and said the generous asset depreciation measures will particularly benefit the real estate sector, which has increased from a $1,000 threshold to $20,000.

“The Government is to be commended for ensuring stability within the sector in continuing the current tax arrangements as they relate to both Capital Gains Tax and negative gearing," said Lynch. “With other sectors of the economy slowing, housing will play an increasingly important role and it is pleasing to see the Government has not tampered with tax arrangements that have been proven to help stimulate housing investment in Australia.”

“Abolition of negative gearing would result in a dwindling supply of properties for rent, escalating rents and reduced opportunities for low to middle income earning Australians to create wealth for self-funded retirement. We strongly welcome the small business package that will give business owners meaningful incentives to hire, invest in equipment and importantly grow their livelihood.”

“The Government is also to be commended for listening to the industry on the issue of foreign investment and we welcome the commitment of $67.2 million over four years to improve compliance and strengthen enforcement.”

“We have long argued the Foreign Investment Review Board was caught asleep at the wheel. Compliance is now in the hands of the Australian Tax Office to the funding needed to ensure the ATO has some teeth in enforcing the new regulations,” concluded Lynch.