New research challenges claims that Labor’s budget tax reforms will heavily burden property investors, arguing that most may actually pay less capital gains tax under the changes. An analysis of historical data indicates that only half of landlords would have faced increased costs from the removal of negative gearing over the past 17 years, casting doubt on whether the reforms alone are driving a decline in investment activity. The findings suggest the true financial impact on landlords and investors may have been overstated in public discussions since the budget was announced. For those tracking property policy, the study offers a counterpoint to widespread assumptions about the reforms’ financial consequences.
Researcher says public debate since May budget has overstated how much reforms will cost landlords and investorsGet our new political email, free app or daily news podcastMost property investors may end up paying less capital gains tax after Labor’s budget reforms, research based on an analysis of historical data suggests.The e61 Institute’s analysis also found half of all landlords would have faced higher costs from the loss of negative gearing over the period from 2008 to 2025 if the new system had been in place, suggesting the tax reforms alone cannot explain a slump in investment demand. Continue reading...
