There is a lot of misleading information out there about things economic and it seems even more so when you combine property and taxation. Negative gearing is a case in point. Australia is a one-off? For example, it has been stated that Australia is the only country that allows for negative gearing deductions. But this…
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When it comes to property investment you’ll often hear two conflicting philosophies advocated. Some suggest you should invest in property to achieve positive cash flow – that’s when rental returns are higher than your mortgage repayments and expenses leaving money in your pocket each month. Others suggest you should invest for capital growth looking for…
Asked to find an extra A$20 billion per year to fund government priorities like building nuclear submarines and responding to climate change, Australia’s top economists overwhelmingly back land tax, increased resource taxes, an attack on negative gearing and extending the scope of the goods and services tax. The 59 leading economists surveyed by The Conversation…
The property industry, and investors in general, welcomed the Labor party’s announcement that they won’t change the rules of negative gearing if they got into power. So, is this the end of the debate? Not necessarily according to Stuart Wemyss who still has some concerns that we’re going to talk about today. We’ll also discuss…
One of the Australian Labor Party’s (ALP) big election promises in the 2019 federal election was to abolish negative gearing. It would be logical to think that the ALP’s shock election loss in 2019 will serve as a warning for policymakers. That is, banning negative gearing is an unpopular policy. However, I would caution investors…
Coalition in surprise negative gearing crackdown! That was the headline in the Australian Financial Review that caught my attention. They went on to say: New legislation to deny deductions for any losses or outgoings incurred through undeveloped land has been introduced to Parliament, backdated to July 1. The under-the-radar change will have a limited impact…
The ALP’s proposed ban on negative gearing has been well publicised and debated. However, its proposed changes to Capital Gains Tax (CGT) have received far less attention. I suspect that this is because investors tend to overestimate short-term consequences and underestimate more significant long-term outcomes. But, since most of us are long-term investors, I’d suggest…
Is it time to buy your next investment property or should you wait? Now that Labor has declared January 1st 2020 as the date their proposed tax amendments to negative gearing and Capital Gains Tax (CGT) come into effect property investors have just over 7 months to set themselves up. You’d have to be living…
SQM Research released a report into the likely housing market effects of The Labor Party’s proposal to change negative gearing, taking into account current housing market conditions. This research is an update on our initial paper released in June 2016 – a time when the housing market was in a considerably stronger state than the current…
Proposals to limit negative gearing and reduce capital gains tax concessions will cost a Labor Government $32 billion over just 10 years, according to new research. Modelling by the Property Investment Professionals of Australia (PIPA) has found that limiting negative gearing to brand new investment properties as well as reducing the capital gains tax discount…