It’s time to address Negative Gearing issues
Onthehouse.com.au Consulting Analyst says mechanisms already in place for Government to rectify negative gearing’s adverse affect on housing market
Australia, 24 November 2014: With recent estimates from ratings agency Moody estimating that negative gearing, the tax break given to investors who rent property at a loss, has pushed up property prices by 9 per cent, Onthehouse.com.au Consulting Analyst John Edwards today argued that it is time for the government to take action. However, with probably more than 1.25 million Australian’s benefiting from negative gearing, he cautioned that scrapping the tax break is not the best way forward for Australia. He said “The volume of deductions being claimed is probably in the order of $20 billion per annum plus.”
In a paper coming soon to the Onthehouse.com.au website, Mr Edwards, said that removing the Negative Gearing benefit from property investment but not other investments would create a market distortion and could have a jolting affect on Australia’s property market.
Instead, Mr Edwards believes that the government should take four steps to correct the market imbalance caused by negative gearing:
Mr Edwards said: “Negative gearing is a necessary mechanism, in effect acting as a subsidy for people who are renting and encouraging the provision of rental stock for people who cannot afford to buy. It is also a risk minimiser for the investor when interest rates increase. However, there are increasingly cases where it is being allowed by Federal Government authorities when it should not be, and this is distorting the market, causing higher house prices and making it harder for first time buyers.
“Simply removing negative gearing would result in property being treated differently from other asset classes, which in itself could have long term negative effects.
“In fact, tax legislation is quite clear in that investors are not permitted to enter into a transaction with the main purpose of reducing their tax liability – and similarly that if an investor is buying a property with the sole aim of making profits from capital gains and not rentals, then this constitutes property trading, that is, the investor was in the business of buying and selling residential property for a profit and is therefore not entitled to benefits in terms of the capital gains tax legislation. Clearly, the current reality on the ground is that many property transactions should be challenged.
“It is not the fault of the Tax Office that there hasn’t been stricter management of residential property investment, the Tax Office is the instrument of the Federal Treasury, acting on their direction and requires the staff to implement rules and regulation.”
Equally he said: ”There will be many ordinary Australians who have no idea about the limitation in terms of negative gearing. There is simply so much hype about it that many will just simply think there is no limitation and will not be getting any tax advice and doing their own tax returns.
“We are calling on the Federal Treasury to work with the Tax Office to clarify the current situation when it comes to negative gearing, and to take steps to correct how negative gearing is being enforced.”
He continued: “Financial planners and mortgage brokers who are encouraging negative gearing to excessive levels need to recognise their obligations and potential liability in providing their clients with inappropriate advice and make sure that their client is such that the tax deductions they are relying on are not disallowed when the transaction is reviewed by the commissioner.”
For more information and further data please visit www.Onthehouse.com.au.
Ashford Pritchard: E firstname.lastname@example.org / T 02 9492 1040 / M 0411 020 680
Sarah Bond: E email@example.com / T 02 9492 1041 / M 0449 543 181
www.Onthehouse.com.au is Australia’s most transparent and comprehensive real estate portal, empowering consumers to make informed property decisions by providing them with free access to information. Over 1 million unique browsers visit onthehouse.com.au every month to search listings and view in-depth property data, making it Australia’s third most popular real estate platform.
Onthehouse.com.au is the flagship consumer offering of Onthehouse Holdings (ASX:OTH), the 360-degree property market services group that provides comprehensive real estate agency solutions, information and analytics services. Onthehouse Holdings businesses together help over half of Australia’s real estate agencies, as well as being used by financial institutions and other property-related professionals.
Valtech ANZ appoint Morten Sorensen as Business Director
Sydney, 03 December 2014 – Leading global digital marketing and technology firm Valtech has appointed Morten Sorensen as Business Director and Head of its Digital Marketing and Commerce Practice in Australia.
Mr. Sorensen joins the Sydney office from Denmark, where he was an Account Director and Senior Advisor at Valtech’s Aarhus office. A commercial, digital marketing, commerce and customer experience expert, he has spent over 12 years rolling out digital projects and helping International clients such as Lantmannen Unibake, Bestseller, Danske Commodities and Leaseplan.
Prior to working at Valtech, he held senior management roles at online marketing agency No Zebra and software provider DynamicWeb. He has also co-founded two digital marketing companies, and lived and worked in Denmark, Germany and South-eastern Europe.
Valtech ANZ GM Chris Flintoft said that the appointment of Mr. Sorensen leveraged the organisation’s global expertise and scale to bring new skills to the Australian market:
“Beer and classic furniture design aren’t the only great exports to come out of Denmark. Morten is a key hire for us, bringing with him vast technical and product expertise as well as in-depth knowledge of best practice globally. He will lead the establishment and growth of a new Digital Marketing and Commerce practice in Australia – building on our existing stellar work with clients such as CBA, QANTAS, Hoyts, FOXTEL and Telstra.
“The ability for our Sydney office to call on specialist expertise from practitioners like Morten is part of a new suite of opportunities for us as part of Valtech’s growing worldwide business. We’re excited to be able to bring new ideas and approaches to the Australian market, and help both our existing and new clients chart new courses on the digital frontier,” he said.
Mr. Sorensen is the first senior management hire for Valtech in Australia following the acquisition of Sydney-headquartered video-on-demand and connected objects startup Neon Stingray in August this year. He will spearhead the adoption of Valtech’s Agile Marketing approach and have a particular focus on working with major marketing cloud providers such as Adobe and Hybris.
He commented: “It is great to be joining Valtech in Australia at a pivotal time in its evolution, and to help connect startup innovation culture with our global intelligence and capabilities. My passion is to help brand owners and market leaders navigate the digital landscape, and take their digital strategy to the next level.
“I have first hand experience of how this has helped major brands evolve in Europe, and look forward to helping Australian businesses do the same.”
Mr. Sorensen will officially take up his role on 5 January 2015.
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Valtech is a digital marketing agency pioneer in technologies with a presence in nine countries (France, UK, Germany, Sweden, Denmark, USA, India, Australia, Singapore) and 1,500 employees. As a full-service digital agency, Valtech brings value to its customers at all aspects of their digital activities: Strategy consulting, service design, technology services, and optimisation of business-critical digital platforms for multichannel e-commerce and marketing.
In August 2014, Valtech acquired Sydney and Stockholm-based digital technology consultancy Neon Stingray to bolster its development in the ASIA-PAC region by creating a key hub to further expand its technology expertise and client portfolio. Valtech’s Australian clients include QANTAS, FOXTEL, Telstra, Hoyts, CBA and Google, as well as some of the leading companies from the media, entertainment and retail sectors.
5 December 2014: Australian Computer Society (ACS) President Brenda Aynsley OAM today announced the appointment of current ACS Chief Operations Officer Andrew Johnson to the role of Chief Executive Officer.
“It is a testament to the strength of the Society that for the first time in our almost 50 year history, we are able to elevate one of our own to the role of CEO. Andrew joined the ACS in October 2011 as General Manager for Strategic Initiatives and was appointed COO in March 2013. In that time he has overseen continued growth of the Society and spearheaded the development of a suite of products which have enhanced the Society’s position in the ICT professionalism space.”
“I am confident he will ably lead the Society as we build towards our 50th anniversary in 2016.”
Ms. Aynsley also paid tribute to CFO Kim Finch, who has held the role of CEO whilst an executive search was undertaken.
“Kim has done a great job of leading the Society through this transition. I want to extend my thanks to her, as well as the thanks of the staff and volunteers. Managing an organisation in transition is always a challenge, and Kim has met that challenge head on.”
Andrew Johnson has extensive senior management experience servicing both the higher education and VET sectors, including in membership based professional associations. His career has seen him work in a diverse range of markets across the Asia Pacific region.
In his time at the ACS he has delivered significant growth results in the SFIA and education space, all while improving member engagement, particularly among professional partners. He was instrumental in the development of the organisation’s current three-year plan and product offering.
Mr Johnson holds a Masters degree in Technology Policy and Management, He is an ACS Certified Professional and an accredited MySFIA Consultant.
“It’s a great honour to be able to lead an organisation like the ACS” Mr. Johnson said.
“With the incredible growth of the digital economy, the ACS will continue to be a trusted source of knowledge for the Australian ICT sector. That we can do this is a testament to our staff, volunteers and members. I look forward to working with them all in the coming years to keep up the great work done so far”.
Kim Finch will remain in the role of ACS CEO until December 31. Mr Johnson will commence in his role from 1 January 2015.
Thomas Shanahan / firstname.lastname@example.org 0449 902 130
About the Australian Computer Society
The Australian Computer Society (ACS) is the professional association for Australia’s Information and Communication Technology (ICT) sector. Over 20,000 ACS members work in business, education, government and the community. The Society exists to create the environment and provide the opportunities for members and partners to succeed. The ACS strives for ICT professionals to be recognised as drivers of innovation in our society, relevant across all sectors, and to promote the formulation of effective policies on ICT and related matters. Visit www.acs.org.au for more information.