Of these 29% are houses whose owners do not live in them
Most are rented out and negatively geared by investors to reduce their tax
They also benefit from the fifty per cent capital gains tax (CGT) discount
Negative gearing and the CGT discount costs the taxpayer $11 billion every year.
Most of these tax benefits go to the well off.
The top 10% of income earners receive 70% of the benefits.
These are people on more than $90,000 a year
Negative gearing increases the cost of houses by X% and makes it harder for first home buyers
If we limit negative gearing and reduce the CGT discount Australian taxpayers will save over $5 billion a year
Experience has shown that rents will not increase even though the industry claims they will
Grattan’s proposal is to:
Reduce the CGT discount to 25%
Not to allow people to avoid tax on their wages through negative gearing
Saving taxpayers $5 billion a year