It's been too long since we had a good negative vs positive gearing debate, so here's some fuel for the fire
This is from Melbourne's Age newspaper.
What would we do without negative gearing?
October 02 2002
In 1990, 7.5 per cent of Australian taxpayers owned rental property. By the year 2000, 12.5 per cent owned property other people lived in. And a very unsuccessful business it was.
In 1999-2000, 54 per cent of owners told the Tax Office they had lost money on renting. Alas, they had to write almost $3 billion off their taxable income. Welcome to negative gearing: the officially sanctioned tax lurk in which the government encourages Australians to invest in rental housing at a loss, write it off against tax, then reap the benefits in capital gains.
In the year to July, two-thirds of the explosive growth in home lending went to people investing in rental housing. Welfare bodies such as the Australian Council of Social Service have repeatedly urged the government to restrict or abolish the tax breaks. But both major parties say the supply of private rental housing would collapse without them.
This is from Melbourne's Age newspaper.
What would we do without negative gearing?
October 02 2002
In 1990, 7.5 per cent of Australian taxpayers owned rental property. By the year 2000, 12.5 per cent owned property other people lived in. And a very unsuccessful business it was.
In 1999-2000, 54 per cent of owners told the Tax Office they had lost money on renting. Alas, they had to write almost $3 billion off their taxable income. Welcome to negative gearing: the officially sanctioned tax lurk in which the government encourages Australians to invest in rental housing at a loss, write it off against tax, then reap the benefits in capital gains.
In the year to July, two-thirds of the explosive growth in home lending went to people investing in rental housing. Welfare bodies such as the Australian Council of Social Service have repeatedly urged the government to restrict or abolish the tax breaks. But both major parties say the supply of private rental housing would collapse without them.