"That's beside the point — of course, people on the highest incomes will make the highest gains because they tend to have more property. There are well over a million Australians who have an investment property, most of whom are on average earnings, who have an investment property and they are negatively gearing it."
Said Malcolm Turnbull and who does not see any faults with rich people getting richer.
The discount in the tax makes the rich people richer but it has no impact on poor ones.
People are claiming High-income earners are being benefited from the property tax concession but this is the wrong concept according to the current prime minister of Australia, Turnbull.
In a video, Turnbull said the highest earners would obviously remain the guys with higher properties.
Coming up on #abc730 High-income earners benefiting from #propertytax concessions 'beside the point' says PM #auspolhttps://t.co/jwLY8R3ikZ
— abc730 (@abc730) April 26, 2016
Prime Minister is accused of stuttering through his interview on ABC’s 7.30 by SOCIAL media users. In the interview he even said-
“Seventy per cent of people who negatively gear own one property and another 20% own two”
Over his comments that Labor’s negative gearing and capital gains policies would take a sledgehammer to property prices, Turnbull had this to say-
“your viewers tonight understand the laws of supply and demand. If you take a third of the buyers out of a market, price also comes down,”
But people were scratching their heads at his answers.
He says the statement factually incorrect and stated-
“The ability to deduct interest and other costs from personal exertion income has been a generally accepted principle in Australia’s tax system for more than a hundred years.”
Prime Minister Malcolm Turnbull, Treasurer Scott Morrison and local member for Banks David Coleman meet with local family Julian and Kim Mignacca and daughter Addison 1 in Penshurst, Sydney. Picture: Britta Campion