As the government faces a protracted fight over capital gains tax (CGT), the big banks have all but rolled over on negative gearing for Treasurer Jim Chalmers.
Despite being one of the biggest losers from the policy change, Westpac today told mortgage brokers it had effectively accepted the restriction of future negative gearing to new builds.
“While these proposals are yet to be passed into law by Parliament, we all need to take a balanced and considered approach that supports our responsible lending obligations,” Westpac said in an email, seen by Capital Brief.
“Subject to final policy settings, we anticipate that negative gearing will no longer apply to the additional lending amount.”
