ACIL Allen Consulting released a misleading report commissioned by the Property Council of Australia and the Real Estate Institute of Australia about negative gearing. Among its claims are that middle income earners are the primary beneficiaries of negative gearing (debunked here) and capitals gains tax (CGT) concessions, that removing negative gearing would reduce the supply of new housing, and that abolishing negative gearing or capital gains discounts would see rents increase by $10,000.
Our research associate Gavin Putland tried to point out the falsity of this claim to The Australian’s journalist, only to receive this:
These claims are categorically refuted and the glaring contradictions within the report are highlighted by Leith van Onselen at Macrobusiness, who states:
The report has clearly confused the positive return to home owners from economic rents with genuine productive investment that improves the competitive position of the economy and improves overall living standards.
Macrobusiness also exposes that in 2006 Allen Consulting actually called for negative gearing and the CGT discount to be removed! Do these consultants change their conclusions to suit their employers’ agenda?
We are asking our supporters to email ACIL Allen Consulting asking for an explanation.
Dear ACIL Allen Consulting,
Your website states that “We observe the highest standards of intellectual rigour in applying our expertise.”
If this is the case please explain the many contradictions highlighted by MacroBusiness in your report ‘Analysis of Negative Gearing and CGT Discount for Residential Property’.
Please also explain why your firm supported the removal of negative gearing and capital gains concessions in 2006, but not now.
Publishing deliberately misleading conclusions is one thing. But selling off your integrity to support debunked myths that suit the Property Industry cannot be justified with any application of your claimed values.
I look forward to your response.
If you do receive a response make sure you let us know in the comments or via email.