Negative gearing

<div class="b-category-page__custom__header"> <p>In its simplest form, negative gearing occurs when the interest that investors are paying on the loan is more than the income or rental return generated by their asset. As a tax incentive, it allows investors to claim the costs of holding the asset as a direct deduction on their total income. By claiming deductions, investors reduce their taxable income and, ultimately, their tax payable. As the income tax is reduced, their cash flow is improved. </p> <div class="page_subheading_desc-content" style="display: none;"> <p>Together with other benefits and incentives such as first home owner grants, discounted interest rates and special lending standards, negative gearing has, in essence, improved the affordability of housing. In fact, a <a href="https://www.smartpropertyinvestment.com.au/research/17126-the-challenge-of-negative-gearing-for-property-investors">recent study</a> found that 62 per cent of investors rely on negative gearing to assist in funding their homes.</p> <p>However, the same study stated that negative gearing, along with other incentives such as capital gains discounts, fire homeowner grants, and the superannuation saver schemes, is costing the government $14 billion.</p> <p>Political parties have recommended the abolishment of negative gearing, referring to it as an ‘unnecessary perk’ for property investors that hinders first home buyers from purchasing a dwelling. On the other hand, <a href="https://www.smartpropertyinvestment.com.au/research/17845-why-negative-gearing-is-necessary">experts</a> strongly insist that the abolishment will affect affordable housing the most, thereby, being a counterproductive response to the issue. </p> <p>Truly, negative gearing stands as one of the most common points of contention among investors, experts and even the government in the vast landscape of property investment.</p> <p>Smart Property Investment (SPI) gives you an insight on the different opinions and educational discussions on negative gearing to help you understand the policies that influence the business of wealth-creation across the country, mitigate financial risks that may affect your portfolio and ultimately determine the best strategies that will move your investment journey forward.</p> </div> <div class="page_subheading_desc-read-more" style="text-align: center; opacity: .8; cursor: pointer;"></div><span class="page_subheading_desc_icon"><i class="fa fa-caret-down page_subheading_desc_icon" aria-hidden="true"></i></span> </div>

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Tax & Legal 29 NOV 2018

Property expert downplays Labor's negative gearing attack

Labor’s plan for negative gearing may not have the widespread effect that experts are concerned about according to...
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Hotspots 13 NOV 2018

Calls for investor tax breaks intensify up after new national poll

New results from a Newspoll survey about the Labor government’s proposed negative gearing plans indicate significant...
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Tax & Legal 08 NOV 2018

Negative gearing proposal ‘much less severe’ with key clarification

The scope of Labor’s plans for negative gearing were a point of confusion for some, and recent clarity from the Tax...
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Hotspots 26 OCT 2018

“Fundamental misunderstanding” in negative gearing changes

Further analysis of Labor’s negative gearing proposal from industry bodies suggests it is not compatible with the...
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Tax & Legal 24 OCT 2018

Negative gearing proposal tipped to slow renos, new builds

Economic modelling of Labor’s negative gearing and capital gains tax policy has revealed that, if implemented, there...
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Tax & Legal 24 OCT 2018

Negative gearing negativity on the nose

Hands up: who’s sick to death of hearing the bunch of rubbish about negative gearing from people in high places?
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Tax & Legal 19 OCT 2018

Calls to drop negative gearing met with alternative tax proposal

By removing negative gearing, an industry advocate claims Australians would be losing a part of their investing DNA,...
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Tax & Legal 15 OCT 2018

Are changes to capital gains tax and negative gearing policies on the cards?

With possible changes to negative gearing and the capital tax discount threatening the portfolios of many Australian...
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Tax & Legal 10 OCT 2018

Negative gearing policy plans tipped to hit low income earners

A renowned real estate CEO predicts lower-income Aussie property investors will be worse off if Labor’s negative...
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Tax & Legal 01 MAY 2018

Changing negative gearing would ‘reduce the efficiency of the housing market’, says expert

By increasing the tax on investing in residential homes, new research has found rental prices would rise and housing...
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Hotspots 12 APR 2018

Why negative gearing is necessary

For many generations, our governments accepted responsibility for providing and maintaining basic essential community...
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Tax & Legal 09 MAR 2018

Negative gearing reform should prioritise ‘mum and dad’ investors

According to a property research institute, negative gearing prioritises those who are “more affluent”, and should...
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Tax & Legal 05 MAR 2018

Abolish negative gearing to address housing affordability: Grattan

The current crisis of housing affordability has been the result of the actions of “neglectful” governments in the...
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Hotspots 03 MAR 2018

Should you worry about losing negative gearing?

As the federal election looms, one of the most notable proposals in the property investment landscape is the scrapping...
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Finance 21 FEB 2018

Negative gearing negativity on the nose

Promoted by Propertyology It appears that negative gearing negativity is here to stay.
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Hotspots 30 JAN 2018

Negative gearing not driving up prices: report

A report by the Australian Housing and Urban Research Institute (AHURI) has revealed high home prices are not a result...
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Tax & Legal 12 JAN 2018

Don’t make the same ‘devastating’ mistake again: Ray White on negative gearing, CGT

The chairman of Ray White, Brian White, has warned policymakers that any drastic changes to negative gearing and CGT...
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Hotspots 09 JAN 2018

The impact of removing negative gearing: high rents and zero affordability

With Treasury documents outlining how Labor’s negative gearing and CGT discount policies would really impact the...
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Tax & Legal 08 JAN 2018

Negative gearing removal, altering CGT, would have had “small” impact on property prices

Documents acquired under freedom of information laws, which reveal Labor policies in early 2016 to alter the CGT...
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Hotspots 13 NOV 2017

The challenge of negative gearing for property investors

The Australian property market is expected to be affected by the upcoming federal elections, which is set to happen in...
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Finance 06 NOV 2017

Negative gearing, mortgage stress and foreign investment driving unsustainable property

According to one expert, the current state of housing affordability stems from tax incentives such as negative gearing,...
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Hotspots 13 SEP 2017

Why a Labor win would put negative gearing on the chopping block

A Labor win could mean an end to negative gearing. What will it mean when the property value estimate excludes the...
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Tax & Legal 10 MAR 2017

Negative gearing debates driving rental prices

According to the latest figures released by REA Group, rents are continuing to rise as demands for housing are not...
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Tax & Legal 29 AUG 2016

Negative gearing debate to flare up again

Now that the election is behind us the removal of negative gearing seems to be off the table — but will property...
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Hotspots 11 AUG 2016

Positive versus negative gearing

When most people think of investing, the first thing that comes to mind is making money. However, when it comes to...
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