Is Australia about to end negative gearing?

Author: Eamonn Sheridan | Category: News

Here’s an interesting item (for Aussies): Report: Negative gearing is on the chopping block

SBS says the government is considering:

  • grandfathering of arrangements for existing investors
  • but limiting future access to negative gearing so only new properties will be eligible

According to the Grattan Institute:

  • quarantining negative gearing losses would save the Budget around $4 billion per year initially, falling to a saving of around $2 billion per year over the longer-term
  • It would also remove some speculative demand from the housing market

Also:

Reserve Bank of Australia (RBA) data clearly shows that the overwhelming majority of investors – almost 95% – buy pre-existing dwellings, not newly built dwellings, and that the proportion of investors buying new dwellings has fallen spectacularly since negative gearing was re-introduced in September 1987

Full article at the link

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