abc.net.au/news/negative-gearing-and-capital-gains-tax-budget-cost/101612854The 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.
Modelling by the independent Parliamentary Budget Office — commissioned by Greens leader Adam Bandt — estimated that negative gearing would drain $12.7 billion from budget revenue in 2023-33 at the current cash rate of 2.85 per cent. However, that was with interest rates at record low levels. As rates have risen, so too have interest costs and, therefore, the income losses for indebted property investors, increasing the cost to the federal budget of mortgage debt deductions.
Many economists are tipping a cash rate peak of up to 3.85 per cent, which would further increase those losses beyond the scenarios modelled by the PBO.
I assume, if Labor and independents and the greens team up to remove capital gains tax and negative gearing… It might be possible now….
So all these leaners trying to 'provide for their retirement' and 'not be a burden on society in old age'.....by being a burden on society during their most productive years. LOL.
Remove negative gearing for those not building a new home. Encouraging those investors to add to supply rather than just speculate is a step in the right direction.
Will it impact rentals? Maybe. We know through a number of studies removing it will reduce house prices. And the number of houses/units stays the same - so most likely outcome of removing it would be renters becoming home owners.
The PBO are getting their estimates mixed up with their fairy tales. Absolutely ridiculous estimation.
whilst
Labor would be mad to revisit it: it was tinkered with in 1985 and brought back 2 years later, and we all know what happened in 2019....
Cut the CGT discount in half, limit negative gearing to one property. Easy except for gutless politicians Grandfather excess Franking credits whilst they are at it
this discounted tax on investment housing is distorting and inflationary............fix it
Just get rid of it. John Howard lied when he said he would never bring in GST ( THE BIGGEST TAX EVER) if you do it quickly and at the beginning of your term you have three years for people to forget about it, but when so many politicians profit from it it's hard.
The government incentivises people to invest in property. These people then provide a roof over peoples heads!
Labor tried this and it was voters who were against scrapping neg gearing etc & Scomo was re elected. Now we reap what they sowed
So abolish both negative gearing and Capital gains Tax. Seems stupid to give a kick back on property losses and tax property profits. Just let them balance their own damn books.
END these rorts! 🤬🤬🤬
Sorry how much did Gina Reinhart earn last year?
It’s time to stop negative gearing and capital gains
How much do income tax rates of less than 100% cost the budget? That's where the real money is.
With all the rent rises horrific as they are, they should mostly be positive. That interest rate though… clawing it back
How much do income rates less than 100% cost the budget? That's where the real money is.
grandfather negative gearing
The ABC finally reports on the scope of these disgraceful tax rorts - after years of tacit support.
JEChalmers 🤨
It's a dilemma, obviously getting rid of negative gearing will reduce the amount of rentals when we already have a massive shortage. Whats the answer, maybe build more social housing? 🤔
TMFScottP and here's your fix to the budget. Don't worry about touching the income tax rate cuts that everyone works for.
What a complete fckn joke.
theyareaverage Get rid of it
Provided we don't call it welfare, cause that could be construed as some form of socialism.... We be good!
What a shame this was ignored when Bill Shorten was Opposition Leader at the time of the election.