Negative gearing deductions fall 12.5 percent

Negative gearing deductions fall 12.5 percent
Negative gearing deductions fall 12.5 percent

The cost to the federal budget of negatively-geared rental property deductions has fallen 12.5 percent to $10.9 billion.

It sits at the lowest level in four years due to record low interest rates.

The latest Tax Office statistics show the country's two million landlords claimed interest deductions of $21 billion, a decline of 9 percent.

It noted earnings from rents were flat at $38 billion.

The figures, published on Friday, were based on taxpayer's 2013-14 tax returns.

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Negative gearing deductions fall 12.5 percent

SOURCE: PCA/ATO

It show 62 percent of landlords are returning net losses, down from 64 percent the year before.

A record 776,672 taxpayers earned a net profit from their Investment property in fiscal 2014, an increase of 44,322 people compared with the year before.

Columnist Pete Wargent writes the ALP have botched their numbers, and Labor will accordingly cop a good deal of heat on this point from the Coalition.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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Interest Rates Negative gearing

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