Negative gearing: Tax deduction's removal 'would boost Commonwealth revenue by $5b annually'
8 years, 11 months ago

Negative gearing: Tax deduction's removal 'would boost Commonwealth revenue by $5b annually'

ABC  

The Federal Government could save more than $5 billion per year through changes to negative gearing, according to research released by the Grattan Institute. Key points: Current negative gearing arrangements push up house prices, Grattan Institute says Says new housing investment losses should not be deducted from wage income Says restricting negative gearing to new properties "makes it harder for young investors" The independent think tank's Hot Property report argues losses from new housing investments should only be deducted from other investments, instead of from wage income. Professor Daley said the current negative gearing arrangements distorted investment decisions and pushed up house prices. Professor Daley said halving the 50 per cent capital gains tax discount over 10 years would raise an estimated $3.7 billion a year, while abolishing the income tax deduction after a phase-out period of 10 years would tip another $1.6 billion into federal coffers annually. Opposition Leader Bill Shorten has pledged changes to the negative gearing arrangements and capital gains tax arrangements as part of Labor's election policies, saying negative gearing would only be available on newly-constructed homes from July 2017 if Labor won.

Labor Tax Changes Commonwealth 10 Years House Prices Daley Negative Negative Gearing Gearing Grattan Institute Professor Daley  revenue  negative  billion  changes  5b  arrangements  annually  deductions  cent  prices  tax  commonwealth  daley  gearing  removal  house  boost

History of this topic

One million Australians are negatively gearing, new tax figures show
3 months, 1 week ago

One million Australians are negatively gearing, new tax figures show

ABC  

Nearly half of all Australian landlords have negatively geared properties, according to new figures that show the highest earners are hauling in tens of billions of dollars from tax concessions and loopholes. Capital gains tax concessions will "cost" the federal budget $52 billion this year, and super tax concessions another $51 billion, according to Treasury's annual tax report. Labor vowed …

Treasurer Jim Chalmers gives strongest indication yet that the government won't change negative gearing
5 months, 1 week ago

Treasurer Jim Chalmers gives strongest indication yet that the government won't change negative gearing

ABC  

Treasurer Jim Chalmers has given his strongest indication yet that the federal government is not planning to bring in changes to negative gearing, as the teal independents urge a rethink of Labor's "unrealistic" plan to build 1.2 million homes. Mr Chalmers said on Friday that people "shouldn't anticipate this is part of our housing policy, it's not", effectively assuring property …

More than 430,000 Australians could have owned their own home today – if not for negative gearing inaction from seven PMs
5 months, 3 weeks ago

More than 430,000 Australians could have owned their own home today – if not for negative gearing inaction from seven PMs

ABC  

Thirteen years ago at the tax summit called to discuss the Henry Tax Review, David Koch stopped discussion of negative gearing dead in its tracks. 13 billion reasons for change Negative gearing has become so common – in Australia, one in six taxpayers are landlords and 40 per cent of them negatively gear – that we no longer think of …

Negative gearing, capital gains reforms unlikely to lead to major fall in property prices, but rents could rise, experts say
5 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 …

Treasurer Jim Chalmers concedes he asked Treasury for negative gearing modelling
6 months 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 …

While Labor decides whether to take negative gearing reforms to the election, questions will continue growing
6 months ago

While Labor decides whether to take negative gearing reforms to the election, questions will continue growing

ABC  

A week ago, it was a "not terribly clever" question. Negative gearing and capital gains tax rules have sat in Labor's bottom drawer since the party's bruising 2019 election defeat. In the lead-up to the last election, Labor vowed to keep both the Coalition's Stage 3 tax cuts and "maintain the existing regimes for negative gearing and capital gains tax". …

The PM took the podium and dangled possible negative gearing changes, sparking a whiplash-inducing debate
6 months ago

The PM took the podium and dangled possible negative gearing changes, sparking a whiplash-inducing debate

ABC  

Welcome back to your weekly federal politics update, where political correspondent Jake Evans gets you up to speed on the happenings from Parliament House. Albanese "valued" Treasury looking at a range of proposals, though negative gearing was not the government's housing policy, and not their focus. And he dusted off an old Property Council report once used as a weapon …

Anthony Albanese is called out for his OWN $2.2million investment property act - even as he considers major change to negative gearing
6 months ago

Anthony Albanese is called out for his OWN $2.2million investment property act - even as he considers major change to negative gearing

Daily Mail  

Anthony Albanese has been blasted by the Coalition for potentially considering axing negative gearing for property investors, even as his own $2.2million investment property goes on the market. Negative gearing policies allow property investors to claim tax deductions when the costs of owning and maintaining the property, such as loan interest and maintenance expenses, exceeds the rental income. Anthony Albanese …

We're talking about negative gearing again, but why is it such a big deal?
6 months ago

We're talking about negative gearing again, but why is it such a big deal?

ABC  

Negative gearing – the policy that just won't quit – is back. But about half of the financial benefit from negative gearing, and most of the financial benefit from the capital gains tax discount, go to the top 10 per cent of income earners, including a small cohort with large property portfolios. There have long been calls to overhaul negative …

Peter Dutton makes Labor's case that tax breaks for landlords ought to be restricted to those who build homes
10 months ago

Peter Dutton makes Labor's case that tax breaks for landlords ought to be restricted to those who build homes

ABC  

Opposition Leader Peter Dutton might have done us a favour. Foreign investors outbid residents It was, Dutton said, pretty unfair to be at an auction "bidding against somebody who has very deep pockets and somebody who's not an Australian citizen". Peter Dutton promised to stop foreigners buying existing Australian homes in his budget reply speech last week. Labor had a …

What is negative gearing, how does it work and does it increase house prices?
11 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?
1 year, 1 month 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, …

Greens demand negative gearing and capital gains tax phase out in 'help-to-buy' negotiations
1 year, 1 month ago

Greens demand negative gearing and capital gains tax phase out in 'help-to-buy' negotiations

ABC  

In short: The Greens will support the government's "help-to-buy" housing scheme in exchange for restrictions to negative gearing and capital gains concessions. The Greens will support the government's "help-to-buy" housing scheme in exchange for restrictions to negative gearing and capital gains concessions. "If we were able to secure phasing out negative gearing and capital gains tax concessions, some form of …

Treasurer brushes off suggestions broken promise on tax cuts opens door to negative gearing changes
1 year, 1 month ago

Treasurer brushes off suggestions broken promise on tax cuts opens door to negative gearing changes

ABC  

The treasurer has brushed off suggestions the government may scrap the controversial negative gearing scheme after proving willing to break its promise not to touch tax cuts due to take effect in July. Key points: Jim Chalmers says the government is not considering changes to negative gearing Labor took a policy to wind back negative gearing to the 2019 election …

Negative gearing and capital gains tax discount set to cost the budget $20 billion a year within a decade
2 years, 4 months 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 …

House prices rising at record rate, locking some buyers out of the property market, CoreLogic finds
3 years, 7 months ago

House prices rising at record rate, locking some buyers out of the property market, CoreLogic finds

ABC  

Australian house prices are rising at their fastest rate in more than 17 years. Under Mr Shorten's plan, negative gearing would have been restricted to new homes, and the capital gains tax discount — which allows investors to flip properties at a profit without hefty tax bills and costs the federal budget just shy of $10 billion annually — would …

Scott Morrison expressed interest in overhauling negative gearing, according to official documents
5 years, 10 months ago

Scott Morrison expressed interest in overhauling negative gearing, according to official documents

ABC  

Prime Minister Scott Morrison expressed interest in overhauling housing tax concessions, including negative gearing, just days into his time as treasurer, according to official documents. Key points: Documents obtained under FOI show the Commonwealth in 2015 was "willing to consider broader tax reform", including on negative gearing Since 2016, the Coalition has used negative gearing to attack the Labor Party …

What Vote Compass tells us about voters' views on negative gearing
5 years, 11 months ago

What Vote Compass tells us about voters' views on negative gearing

ABC  

Negative gearing has been one of the most hotly contested policy areas of the election campaign — and Vote Compass data suggests it's also dividing Australian voters. Key points: A clear majority of Labor and Greens voters want to cut back investment property concessions like negative gearing However, 47 per cent of Coalition voters oppose any move towards fewer property …

Labor to limit negative gearing concessions to new properties from January 1
5 years, 11 months ago

Labor to limit negative gearing concessions to new properties from January 1

ABC  

A federal Labor government would limit negative gearing concessions to new properties from January 1 next year, earlier than many analysts and commentators predicted. Key points: Federal Labor argues negative gearing concessions are too generous The change would stop new investors from deducting rental losses from their income tax It would raise an estimated $2.9 billion over four years Shadow …

Negative gearing changes 'could tip Australia into recession', warns John Symond
6 years, 3 months ago

Negative gearing changes 'could tip Australia into recession', warns John Symond

ABC  

A number of housing industry insiders have issued a warning about curbing negative gearing, with mortgage company boss "Aussie John" Symond saying "it could tip Australia into recession". Key points: Labor's rule change would not affect people who are currently negatively gearing properties The UBS's chief economist said he was worried about the effect the change would have on the …

Fact check: Do two-thirds of negative gearers have a taxable income under $80,000?
6 years, 4 months ago

Fact check: Do two-thirds of negative gearers have a taxable income under $80,000?

ABC  

The claim Treasurer Josh Frydenberg, in keeping with his predecessor Scott Morrison, has attacked Labor for its policy to restrict tax concessions for negatively geared investment property. Experts contacted by Fact Check took issue with Mr Frydenberg's use of taxable income to define wealth, due to the very nature of negative gearing, which is a tax deduction that reduces taxable …

Negative gearing, capital gains changes suited to the times, tax expert argues
6 years, 4 months ago

Negative gearing, capital gains changes suited to the times, tax expert argues

ABC  

With the banks cracking down on lending and Labor proposing changes to negative gearing and capital gains tax, investors feel under siege. Labor's plan to abolish negative gearing for established properties and halve the capital gains tax discount is a major concern for Ms Bugeja. Opponents of Labor's tax changes play down the impact of investors and their tax concessions …

Minister Alan Tudge warns Labor's negative gearing plan would be 'catastrophic' for house prices
6 years, 5 months ago

Minister Alan Tudge warns Labor's negative gearing plan would be 'catastrophic' for house prices

Daily Mail  

Australian house prices could collapse dramatically if Labor wins next year's election, a minister has warned. Population Minister Alan Tudge is so worried about the scrapping of negative gearing he has sounded a warning about what could happen were Labor to win the 2019 federal election He warned came a day after Core Logic revealed Sydney's median house price fell …

Labor pounces on Scott Morrison's negative gearing 'lie' after release of secret briefing documents
7 years, 2 months ago

Labor pounces on Scott Morrison's negative gearing 'lie' after release of secret briefing documents

ABC  

Federal Labor's negative gearing overhaul would likely have a "small" impact on home values, official documents reveal, contradicting Government claims the policy would "smash" Australia's housing market. The previously confidential advice to Treasurer Scott Morrison from his own department said the Opposition's plan might cause "some downward pressure" and could have "a relatively modest downward impact" on prices. Treasurer Scott …

Scott Morrison reaffirms Coalition's opposition to changing negative gearing tax concessions
7 years, 11 months ago

Scott Morrison reaffirms Coalition's opposition to changing negative gearing tax concessions

ABC  

No changes to negative gearing and a drive to increase private investment in the supply of housing are the key to making the market more affordable, Treasurer Scott Morrison says. Key points: Australians experiencing rental stress, more homeless Australians "We don't need to spend more provided we spend it better," Treasurer says Negative gearing was a key battle in the …

Negative gearing reform 'essential' to improve housing affordability: Saul Eslake
7 years, 11 months ago

Negative gearing reform 'essential' to improve housing affordability: Saul Eslake

ABC  

Scaling back negative gearing or capital gains tax concessions for property investment is "essential" to improve housing affordability for first home buyers, independent economist Saul Eslake has argued. While applauding some of the housing affordability measures outlined by Treasurer Scott Morrison in his speech to the Australian Housing and Urban Research Institute this morning, Mr Eslake said cutting back negative …

Labor demands Malcolm Turnbull explain negative gearing comments
7 years, 11 months ago

Labor demands Malcolm Turnbull explain negative gearing comments

ABC  

Federal Labor is demanding Prime Minister Malcolm Turnbull explain comments he made to Parliament last year about negative gearing. Unreleased documents could paint the full picture Using the Freedom of Information Act, the ABC sought Treasury material produced between February 11 and 19 last year about the impact of negative gearing or capital gains tax concessions on housing. Key dates: …

Government looked into impact of tax breaks on housing market but did not act: FOI investigation
7 years, 11 months ago

Government looked into impact of tax breaks on housing market but did not act: FOI investigation

ABC  

Federal Cabinet formally examined the impact of tax breaks on Australia's booming housing market in early 2016 but decided not to act, an ABC investigation has revealed. Key dates: February 11—19: Date range for which the ABC sought documents about negative gearing and capital gains tax Date range for which the ABC sought documents about negative gearing and capital gains …

Tax measures too broad to tackle debt and housing crisis, Scott Morrison says
7 years, 11 months ago

Tax measures too broad to tackle debt and housing crisis, Scott Morrison says

ABC  

Key points: Treasurer Scott Morrison says the economy is not at risk of housing shock On potential changes to the capital gains tax Mr Morrison criticizes Labor's 'sledgehammer' tactics RBA Governor Philip Lowe said there was an unhealthy investor appetite for interest-only home loans Treasurer Scott Morrison says the head of the Reserve Bank was not criticising negative gearing when …

5 ways we could make buying a house more doable
8 years, 1 month ago

5 ways we could make buying a house more doable

ABC  

It's easy to see why young Australians might feel like they'll never catch up to rising house prices. It's pretty clear that getting rid of negative gearing would make investing in property less attractive, which would push down prices and free up more of the market for owner occupiers. Likelihood of this ever actually happening: Labor went to the last …

Sydney housing: Negative gearing looms as major headache for Gladys Berejiklian
8 years, 2 months ago

Sydney housing: Negative gearing looms as major headache for Gladys Berejiklian

ABC  

It took just three hours on Wednesday morning for freshly minted New South Wales Premier Gladys Berejiklian's housing headache to become a full-blown migraine. Negative gearing is a tax break incentive for property investors It is a Federal Government issue, but State Governments often join the debate Some argue it hurts first-home buyers, who plan to be owner-occupiers The policy …

NSW Planning Minister argues against negative gearing, wants focus on housing affordability crisis
8 years, 4 months ago

NSW Planning Minister argues against negative gearing, wants focus on housing affordability crisis

ABC  

New South Wales Planning Minister Rob Stokes has broken ranks with his federal Liberal Party colleagues on the issue of negative gearing, arguing the rules should change to help ease Sydney's housing affordability crisis. Key points: Governments need housing policies which "focus on equality of opportunity", Rob Stokes says Scott Morrison says he needs to consider how negative gearing impacts …

Election 2016 cheat sheet: Where Labor and the Coalition stand on issues that matter
8 years, 8 months ago

Election 2016 cheat sheet: Where Labor and the Coalition stand on issues that matter

Daily Mail  

Most people would prefer the dentist's chair over sitting down to hear politicians ramble on about negative gearing or tax rebates. Malcolm Turnbull is pictured in March with children at Mooringe World of Learning Child Care Centre in Adelaide Bill Shorten is pictured in June at a childcare centre in Glen Waverley during the election campaign Shorten visits the Logan …

Election 2016: Government maintains negative gearing stance despite Treasury documents
8 years, 9 months ago

Election 2016: Government maintains negative gearing stance despite Treasury documents

ABC  

The Federal Government has argued negative gearing largely benefits average Australians despite being advised otherwise months ago, a document obtained by the ABC reveals. Key points: FOI report shows more than half of negative gearing tax benefits go to top 20 per cent of incomes Bottom 20 per cent of earners getting 5 per cent of benefits Modelling predicts negative …

Regional voters have their say on negative gearing
8 years, 10 months ago

Regional voters have their say on negative gearing

ABC  

Labor's proposed changes to negative gearing have received a mixed response from voters in regional Australia. "Negative gearing for someone who is a worker like myself, is just a play thing for rich people," he said. "We are also going to see radical changes not just for first home buyers but also renters because investors don't have that subsidy they …

Election 2016: Real estate industry unleashes campaign against Labor's negative gearing policy
8 years, 10 months ago

Election 2016: Real estate industry unleashes campaign against Labor's negative gearing policy

ABC  

The Federal Opposition insists it is not concerned about the real estate industry's threat to unleash a campaign against Labor's negative gearing policy. Key points: Labor says negative gearing policy will help first home buyers Real estate industry says it will send rent prices up Labor questions motives of industry, says they have no evidence Property Council say negative gearing …

Fact check: Do two-thirds of negative gearers earn under $80,000?
8 years, 10 months ago

Fact check: Do two-thirds of negative gearers earn under $80,000?

ABC  

The claim Assistant Treasurer Kelly O'Dwyer says that Labor's policy on negative gearing disadvantages average earners who rely on salaries or wages. After Ms O'Dwyer finished speaking, another panellist, Shadow Assistant Treasurer Andrew Leigh said: "The $80,000 figure is taxable income, in other words that's the income after we've taken account of negative gearing." In relation to Mr Morrison's claim, …

Explainer: Negative gearing and capital gains tax
8 years, 10 months ago

Explainer: Negative gearing and capital gains tax

ABC  

Debate over negative gearing is raging after it was revealed the Reserve Bank had given some support for changing the system. Negative gearing allows property investors who make a loss to reduce the tax they pay on other income. A Grattan Institute report last month showed the top 10 per cent of income earners, before negative gearing, get almost half …

High-income earners benefiting from property tax concessions 'beside the point', Malcolm Turnbull says
8 years, 11 months ago

High-income earners benefiting from property tax concessions 'beside the point', Malcolm Turnbull says

ABC  

Prime Minister Malcolm Turnbull says the fact investment property tax concessions heavily benefit high-income earners is "beside the point", and Labor's plan to restrict deductions is "unjust". Key points: Top 10pc of earners get almost half all negative gearing tax benefits, receive two thirds of all capital gains income: Grattan Institute Institute wants to scrap negative gearing, half capital gains …

Malcolm Turnbull pens blog post take-down of report on negative gearing savings
8 years, 11 months ago

Malcolm Turnbull pens blog post take-down of report on negative gearing savings

ABC  

Prime Minister Malcolm Turnbull has written a take-down of an independent report recommending changes to negative gearing, arguing the document is littered with inaccuracies, unsupported claims and direct contradictions. The Government has ruled out changes, while Labor's election policy is to restrict negative gearing to new homes from July next year, with a projected saving of $32.1 billion over a …

Who uses negative gearing in Australia? Search the full list by occupation
8 years, 11 months ago

Who uses negative gearing in Australia? Search the full list by occupation

ABC  

Teachers, nurses, surgeons and anaesthetists have all been dragged into the negative gearing debate by our political leaders. More than 1.25 million taxpayers claimed rental losses, totalling about $11 billion in tax deductions. Surgeons who used negative gearing reduced their taxable income by an average of nearly $30,000 each in 2013-14 while other medical professionals had some of the highest …

Negative gearing: Labor will 'punish mum and dad investors' with changes, Government says
8 years, 11 months ago

Negative gearing: Labor will 'punish mum and dad investors' with changes, Government says

ABC  

The Federal Government is using its decision to leave negative gearing untouched to launch a campaign accusing Labor of "wanting to punish mum and dad investors". Key points: Coalition to leave existing negative gearing rules in place Labor proposal to negatively gear only new properties criticised by Government Think-tank says negative gearing tax benefits overwhelmingly favour the rich The Opposition's …

Negative gearing causing house prices in Sydney and Melbourne to skyrocket, report says
9 years ago

Negative gearing causing house prices in Sydney and Melbourne to skyrocket, report says

ABC  

A new report on the housing affordability crisis in Sydney and Melbourne calls for the Federal Government to urgently rethink its support of negative gearing. Key points: Report reveals the record-high housing prices in Sydney and Melbourne would lead to social problems Report's author says governments have created the conditions for major concessions for investors REIQ says changing negative gearing …

Fact check: Do most negative gearers earn a modest income?
9 years ago

Fact check: Do most negative gearers earn a modest income?

ABC  

The claim "In terms of how I have described my attitude towards negative gearing, I have always understood that for the vast majority of Australians who use negative gearing they are modest income earning Australians, nurses, teachers, police," Treasurer Scott Morrison told the National Press Club in February. Data provided by Mr Morrison's office, based on Treasury calculations, showed 67 …

Row erupts over BIS Shrapnel negative gearing report
9 years ago

Row erupts over BIS Shrapnel negative gearing report

ABC  

Labor has used Question Time to ridicule Treasurer Scott Morrison after he relied on an economic report with a significant error. Key points: BIS Shrapnel report says cutting tax break drives up rental prices and pushes down house values Report misquoted the Australian annual GDP Bill Shorten dismisses report as "a joke" Scott Morrison criticised for labelling report as evidence …

Negative gearing changes good for economy if home prices fall: David Murray
9 years ago

Negative gearing changes good for economy if home prices fall: David Murray

ABC  

Former banker and chair of the Financial Systems Inquiry David Murray says Labor's plan to restrict negative gearing to new housing investment will "distort" the market and possibly lead to a fall in prices for established property. Prime Minister Turnbull and his Treasurer Scott Morrison had reportedly been looking at a plan that would impose a $20,000 cap on annual …

Scott Morrison to focus on tax cuts in Press Club address, MPs warn against negative gearing
9 years, 1 month ago

Scott Morrison to focus on tax cuts in Press Club address, MPs warn against negative gearing

ABC  

Federal Treasurer Scott Morrison has declared he is focused on cutting spending, as the Coalition backbench continues to agitate against any changes to negative gearing in the Government's tax plan. He will also make the case for income tax cuts Barnaby Joyce said Cabinet is yet to make a final decision on negative gearing Mr Morrison will today make his …

Shorten uses NSW ALP conference to unveil negative gearing changes to to 'level housing playing field'
9 years, 1 month ago

Shorten uses NSW ALP conference to unveil negative gearing changes to to 'level housing playing field'

ABC  

Federal Opposition Leader Bill Shorten has unveiled plans to change negative gearing rules for property purchases, in a move touted to "put the great Australian dream back within reach for the middle and working class". Key points: Labor government would restrict negative gearing to "newly constructed homes" Capital gains tax discount reduced from 50 per cent to 25 per cent …

Labor leader Bill Shorten to announce capital gains tax, negative gearing election strategy
9 years, 1 month ago

Labor leader Bill Shorten to announce capital gains tax, negative gearing election strategy

ABC  

Federal Opposition Leader Bill Shorten will announce plans on Saturday to change negative gearing and the capital gains tax discount if Labor wins the next federal election. Key points: Capital gains tax discount, negative gearing changes planned if Labor wins federal election, Shorten will say Measures 'could save budget $32.1b' over 10 years Existing investors who access negative gearing would …

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