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Negative gearing

Analysis and Comment (8)

Should housing policy and tax reform be driven by pricey Sydney housing? Should housing policy and tax reform be driven by pricey Sydney housing? Aaron Jacobs/Flickr

Housing bubble or not, negative gearing should stay

The perennial debate about negative gearing of residential property investments has been reignited yet again, by two reports in the past week. The International Monetary Fund has nominated taxes on housing…
Are Australians blaming the wrong people for skyrocketing house prices? Are Australians blaming the wrong people for skyrocketing house prices? Dan Peled/AAP

Seven things keeping house prices high (and foreign investment isn’t one of them)

Further reading: Little hard data in the area of foreign investment Don’t be misled on Chinese foreign investment: read the facts Don’t blame foreign investment for rising house prices Explainer: why negative…
Quarantining losses is used across much of our public finance system. Negative gearing is an exception. Quarantining losses is used across much of our public finance system. Negative gearing is an exception. Image sourced from www.shutterstock.com

Why it’s time to quarantine negative gearing

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…
The Commission of Audit may miss the true picture if it looks only at cutting costs. The Commission of Audit may miss the true picture if it looks only at cutting costs. Image sourced from www.shutterstock.com

To cut fairly, Commission of Audit should look at tax expenditures

In the lead-up to a crucial federal budget in May, it could be argued that requiring the Commission of Audit to identify revenue trends that could pose a risk to the budget’s structural integrity could…
Under the current tax regime, investors and cashed up owner occupiers are bidding up the cost of housing. Under the current tax regime, investors and cashed up owner occupiers are bidding up the cost of housing. Dean Lewins/AAP

Explainer: why negative gearing is bad policy

In an ideal (and economically efficient) world, tax policy would not influence the investment or consumption choices taxpayers make. In reality, this neutrality is rarely achieved. External factors influence…
Australia’s housing and rental affordability crisis is often cited as a justification for negative gearing. Australia’s housing and rental affordability crisis is often cited as a justification for negative gearing. AAP

It’s time to abolish negative gearing

Few Australian housing policies are more contentious than negative gearing. Despite the publicity it has received and its popularity with government and property investors, little analysis of negative…
Flat earth approach: the tax burden on housing accounts for much of the financing cost of a new home. Flat earth approach: the tax burden on housing accounts for much of the financing cost of a new home. AAP

How taxing housing diminishes affordability

A fundamental truism of economics is that if you tax something, you get less of it. Tax is thus a good place to start in seeking to explain why Australia’s housing market is chronically under-supplied…
Jobseekers are the true target of a government clawback on student deductions. Jobseekers are the true target of a government clawback on student deductions. AAP

Labor: taxing the rich or screwing students and the unemployed?

Under the cover of last week’s budget splash, the Federal Government has quietly changed tax laws which currently allow students and potentially jobseekers to claim a deduction for expenses against government…