There’s an easy way to save the government up to $20 billion
annually.
Just slug greedy, rich property investors by reforming
negative gearing and capital gains tax and it won’t increase rents for tenants
or hurt mum and dad investors a bit.
Really??
Nothing new about this…negative gearing has been a hot topic
in Australia for years, often pitched as a controversial tax benefit for greedy
property investors that makes homeownership harder to attain.
Critics argue it inflates property prices and enriches
investors at the expense of aspiring homeowners.
However, a closer look reveals a different story: negative
gearing plays a significant role in providing affordable rental housing and
boosting the supply in a market facing chronic shortages.
Removing or limiting this incentive would likely have
unintended consequences, increasing rents for tenants and doing little to
improve housing affordability.
So let’s explore the history and impact of negative gearing,
and why it remains essential for a balanced property market.
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Jason Gwerder
Wednesday, 29 January 2025