New ATO data confirms that almost two in three negative gearers have taxable incomes less than $80,000 a year.
New Australian Tax Office data has confirmed that the bulk of Australians who negative gear have taxable incomes below $80,000 a year.
The ATO data confirms that:
- 2,047,000 Australians own an investment property
- 1,277,000 Australians negative gear their investment property
- The average deduction for negative gearing is $8,702
- 807,521 Australians with taxable incomes below $80,000 a year negatively gear
- Over 103,000 Australians aged under 30 negatively gear property
“Negative gearing has been part of the taxation system for over 100 years – and over 2 million Australians own an investment property. These properties represent the bulk of the rental market in Australia”, said Glenn Byres, Chief of Policy and Housing for the Property Council of Australia.
“Over 2 million Australians use investment property as a means of securing their financial future.
“We see very clearly from the data that the average deduction is $8,700. Far from being a rort, buying and paying off an investment property is a way that Australians are building financial independence.
Mr Byres said even the most strident opponents of negative gearing have argued that abolishing negative gearing will only reduce the value of properties by 2 per cent or less.
“For all the talk of Sydney property prices and negative gearing, the data confirms that NSW residents claim smaller deductions for negative gearing than other states.
“Australians who invest in residential property play important public policy purposes – they are funding vital new housing supply which is vital for housing affordability and the economy, strengthening their own financial independence, and are providing a massive pool of rental properties which ensures a vibrant and stable rental market."
Media contact: Paul Ritchie | E [email protected]