Negative gearing: the perfect fixer upper?
Negative gearing is not the housing saviour those in the industry claim it to be.
Labor’s Chris Bowen and Bill Shorten announced plans for new tax rules, and the government, even as it attacked their plan, has also opened the door to changes to negative gearing.
The problem is there are already too many buyers willing to pay high prices, and negative gearing is designed to create more buyers willing to pay more.
The Labor has tackled negative gearing reform first.
Even 12 months ago, challenging negative gearing seemed off limits. Now, there are real plans for reform.
ACOSS says over 90% of investment in negatively geared housing stock applies to existing properties.
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The Australian Council of Social Service has called for the tax treatment of private trusts to be tightened, which it says could save $1.5 billion in 2017-18.
While a major tax switch is now not on, Scott Morrison is still heavily focused on the challenge of bracket creep.
Fairfax-Ipsos’ first poll of 2016 has the government ahead 52-48% on the two-party vote and Malcolm Turnbull leading Bill Shorten 64-19% as preferred prime minister. While the numbers for the Coalition…
Bill Shorten announced a number of tax reform initiatives at the NSW Labor conference.
Bill Shorten has unveiled tax changes that will tighten negative gearing and capital gains tax provisions, saving $565 million over the forward estimates and $32.1 billion over a decade.
There are some relatively easy administrative ways of tackling bracket creep.
These three tax areas have become mired in poor analysis and misconceptions.
Assistant Treasurer Kelly O'Dwyer said average income earners are the main group taking advantage of negative gearing.
AAP Image/Lukas Coch
Assistant Treasurer Kelly O'Dwyer told the ABC that "average income earners largely are the people who do get to take advantage of negative gearing." Is that a fact?
Rethinking tax is harder than it looks.
Even when everyone agrees on the need for reform, there's no guarantee we'll ever see it happen.
Bringing together buyers and sellers of apartments could result in better apartment pricing and design.
Lessons from the sharing economy could provide a housing solution for both buyers and sellers.
There’s more to house prices than supply and demand.
Real estate is favourably taxed in Australia, and it will continue to bite the housing market unless there is serious reform.
Treasurer Joe Hockey has ruled out changes to negative gearing, but the policy advantages some taxpayers over others.
Almost 1.3 million Australian taxpayers use negative gearing. But the policy is inherently unfair.
Removing negative gearing may have supply side impacts that are not as straightforward as has been suggested.
There are well-rehearsed arguments both for and against removing negative gearing from property.
Who pays what share of tax is an age old debate, so perhaps it’s time to turn things on their head.
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Australia's current tax system distorts investor behaviour. Rethinking the entire structure could shift things for the better.
Record-low interest rates could further inflate the housing markets in Sydney and Melbourne.
While policies such as negative gearing have helped middle to high income earners own property, they have also locked low income earners out of the market and created an unequal housing sector.
Has treasurer Joe Hockey already made up his mind about the more controversial tax suggestions in the recent Re:think discussion paper?
Treasurer Joe Hockey's media comments this week around contentious tax issues don't bode well for the Taxation White paper.
Can everyone be a winner from comprehensive tax reform?
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Just what are the issues we need to watch when it comes to tax reform? Read this explainer.
Should housing policy and tax reform be driven by pricey Sydney housing?
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Are Australians blaming the wrong people for skyrocketing house prices?
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Quarantining losses is used across much of our public finance system. Negative gearing is an exception.
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Abolishing the sacred cow of negative gearing - where losses can be used as a deduction against other income - is considered by governments of all persuasions as electorally unpalatable. But this part…