RBA housing memo ‘out of date’
TREASURER Scott Morrison has dismissed as "out of date" an internal Reserve Bank memo that says changes to negative gearing could be a "good thing" for financial stability.
The 2014 memo, which was released under Freedom of Information laws, said negative gearing and capital gains tax discounts affected property more than other investments, as homes could be bought at a higher "leverage" than shares.
But Mr Morrison told ABC Radio yesterday the memo was out of date, citing a recent warning from rating agency Moody's that changes to the policy could affect the nation's housing market.
The Turnbull government has ruled out changing negative gearing and capital gains tax discounts, while Labor would limit the former to new homes and the latter to 25%, down from 50%, from 2017.
Mr Morrison said the RBA's memo no longer applied to the housing market, given more recent changes to allowable lending ratios on banks imposed by the banking regulator.