HERE is further proof of what the Unconventional Economist, Treasury and others have been revealing … contrary to the misleading reports of Josh and Joe …
LABOR’s policy will grandfather established property investments while encouraging investment in ‘new builds’
-this should open up the established housing market for Australian First Home Buyers
BIG MAJORITY SUPPORTS LABOR’s NEGATIVE GEARING REFORMS
Landlords in Sydney’s richest postcodes make biggest negative gearing claims: ATO
Landlords in some of Sydney’s most expensive suburbs have been reaping the biggest benefits from negative gearing, according to new ATO data which reveals the size of claims by each postcode.
Landlords have been claiming negative gearing losses of more than $20,000 a year in some of Sydney’s priciest suburbs, tax office data has revealed.
Among the suburbs where landlords were claiming the biggest annual losses on their properties were up-market eastern suburbs Darling Point and Vaucluse.
The losses were measured by the gap between expenses, such as mortgage repayments and maintenance, and income generated by rents.
Under current tax rules, property investors are permitted to claim these losses against their taxable income — referred to as negative gearing.
Just under 500 landlords in Darling Point were negatively gearing their properties and the average loss claimed was $29,264, according to the Australian Taxation Office.
The median price of a Darling Point house is more than $7 million — nearly seven times the average price of a house across Sydney as a whole, CoreLogic data showed.
Nearby Vaucluse had 817 landlords using negative gearing and making an average loss of $21,739. The average loss for landlords in Bellevue Hill was $15,000.
The average loss in the suburb of East Melbourne, an affluent inner city area, was $20,717 across more than 800 landlords.
In Peppermint Grove, Perth’s priciest suburb, and Toorak, Melbourne’s priciest suburbs, the losses were about $15,000 annually.
Some of the biggest losses in the country were also claimed by Tasmanian landlords.
The 118 negatively geared landlords in the postcode 7215, which incorporates a large scantly populated area on Tasmania’s east coast, claimed an average loss of $58,366.
The Australian Taxation Office figures released by the Treasury included only tax claims submitted over the 2016/17 financial year.
The data followed an earlier report by the Grattan Institute that showed about 50 per cent of the tax benefits from negative gearing went to the top 10 per cent of income earners.
The taxation office also recently announced measures to crackdown on rental deductions, including doubling the number of audits of landlords.
Negative gearing has become a hotly debated topic in the lead up to this year’s federal election, with the Labor Party promising to restrict the benefit to newly built properties if elected.
The Coalition has pledged to retain the tax benefit, labelling Labor’s policy a potential risk to the economy.
CAAN: Liberal Party rubbish!
Originally published as Richest landlords make biggest gearing claims