Why the cost of negative gearing tax breaks is likely to rise
The cost of negative gearing tax concessions is set to soar as interest rates rise, meaning Australian taxpayers could spend billions of dollars to offset private landlords’ lost income in coming years, experts say.
Abolishing the contentious tax policy is one of the fairest and least economically damaging ways to help repair the public budget, top economists say.
A property is negatively geared when the cost of interest and expenses linked to owning a rental is more than the income it generates each year. Landlords can claim this cost as a tax deduction against their wage income to pay less tax.
Comments
Post a Comment