Negative gearing, capital gains reforms unlikely to lead to major fall in property prices, but rents could rise, experts say
2 months, 3 weeks ago

Negative gearing, capital gains reforms unlikely to lead to major fall in property prices, but rents could rise, experts say

ABC  

House prices would fall about 2 per cent if Labor went ahead with its previous election policy to change property tax breaks, modelling from the Grattan Institute shows. Brendan Coates says changes to negative gearing and the capital gains tax discount could save the federal budget billions of dollars annually. A University of Melbourne study by academics Yunho Cho, Shuyun May Li and Lawrence Uren found eliminating negative gearing would reduce total housing supply by 1.8 per cent and increase rents by 2.5 per cent. "The capital gains tax discount has undertaxed capital gains in the post-2000 period as inflation has been low and house price growth high," Dr Uren said. "Whereas these tax concessions have 1 to 4 per cent effect on house prices, the effect of zoning and housing supply is enormous," Dr Tulip said.

Tax Property Prices Capital Interest Rates Discount Treasury Capital Gains Investors Phillips Cent Melbourne Rents House Prices Cgt Tax Breaks Gains Housing Supply Negative Negative Gearing Gearing Grattan Institute Dr Tulip Dr Uren Property Tax Breaks  investors  unlikely  tax  lead  rise  gearing  reforms  negative  gains  major  prices  capital  cent  discount  rents  property  say  housing  supply

History of this topic

Treasurer Jim Chalmers concedes he asked Treasury for negative gearing modelling
2 months, 3 weeks ago

Treasurer Jim Chalmers concedes he asked Treasury for negative gearing modelling

ABC  

Jim Chalmers has conceded he tasked Treasury officials to look at options to scale back negative gearing, saying it was not "unusual" and again leaving the door open to revisiting the reforms. It came a day after Mr Albanese raised doubts about the merits of reforms to the tax breaks, citing work by the Property Council showing less generous tax …

What is negative gearing, how does it work and does it increase house prices?
8 months, 3 weeks ago

What is negative gearing, how does it work and does it increase house prices?

ABC  

There's been a lot of talk in recent years about how difficult it is for young people to buy a home in Australia, but with everything getting more expensive lately, the conversation has been intensifying. And the discussions usually include terms such as "negative gearing" and "capital gains tax concessions". Janda explains the major benefit comes from combining negative gearing …

Will another housing price boom spark a negative gearing policy U-turn?
10 months ago

Will another housing price boom spark a negative gearing policy U-turn?

ABC  

There's an uncomfortable reality most of our political leaders are unwilling to confront. The worst ideas, such as allowing first home buyers to tap into their superannuation, would only add to demand and deliver windfall gains to sellers while denuding younger generations of a retirement income. Not surprisingly, since January last year, Australian property prices have been on a tear, …

Negative gearing and capital gains tax discount set to cost the budget $20 billion a year within a decade
2 years, 1 month ago

Negative gearing and capital gains tax discount set to cost the budget $20 billion a year within a decade

ABC  

The cost of negative gearing is set to blow out as interest rates rise and, with it, the capital gains tax discount is expected to cost the federal budget more than $20 billion a year within a decade. Key points: Modelling from the Parliamentary Budget Office forecasts negative gearing costs to double as interest rates rise and, potentially, more than …

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