Article – Agriculture paper to look at tax22 July 2015
16 June 2015
Proposed changes to the tax treatment of farm investments will be included in the soon-to-be-released agriculture white paper.
The issue of negative gearing and farms was discussed at a coalition joint party room meeting in Canberra on Tuesday.
Treasurer Joe Hockey told the meeting that the limitations on negative gearing of home farms would be dealt with in the agriculture white paper as well as the tax review.
Three coalition MPs, including two from regional areas, told the meeting the government needed to broaden the debate about negative gearing beyond its impact on housing.
One MP said voters should be reminded that if negative gearing is wound back under Labor it could impact on people who borrow to invest in small businesses.
Two MPs said the banning of negative gearing of farms when off-farm income is more than $250,000 is a disincentive for investment.
Agriculture Minister Barnaby Joyce is known to support removing the anomaly as a way of injecting more capital into rural and regional areas.
A related white paper on the development of northern Australia is expected to be released in Cairns on Friday.
Courtesy of The Australian