New ATO data raises new questions about changes to negative gearing
New ATO tax data has brought into question attempts to limit negative gearing.
“According to the ATO, total losses from investment properties have fallen from $7.9 billion in 2011-12 to $3.7 billion in 2013-14”, said Ken Morrison, Chief Executive of the Property Council of Australia.
Taxation Statistics 2013-14
Individual rental income and deductions ($ billions), 2010–11 to 2013–14 income years
“Investment in property is driving jobs, growth and keeping rents down. At the same time, there is absolutely no evidence that negative gearing is being abused.
“The potential budget impact to taxpayers of negative gearing has fallen by over 50 per cent in two years.
“The current taxation arrangements for investment properties are working well – they are supporting prosperity, creating jobs and doing so in a way that is sustainable.
“Importantly, Australians are experiencing a stable rental market due to increases in supply over recent years. Thirty per cent of this supply is the result of property investors”.
“Australians are using property investment properly. They are using it to responsibly prepare for their retirement.
“This data puts a further hole in the case of those arguing for change.”