The Income Tax Treatment of Housing Assets: An Assessment of Proposed Reform Arrangements
AHURI Final Report No. 295, Australian Housing and Urban Research Institute Limited, Melbourne, doi:10.18408/ahuri-8111101; ISBN: 978-1-925334-59-3
74 Pages Posted: 13 Mar 2018
Date Written: March 7, 2018
This research models several politically acceptable pathways to reform negative gearing and CGT so as to reduce impacts on less sophisticated property investors. Two reform models—a rental deduction cap of $5,000 and a progressive rental deduction based on income—could lead to savings of over $1.7 billion each. Both are progressive in nature, reducing tax savings from negative gearing as tax assessable income increases.
Keywords: negative gearing, capital gains tax, private rental housing, urban policy, taxation, real estate investment, housing policy, australia
JEL Classification: E22, E61, E64, H21, H24, R21, R31, R38
Suggested Citation: Suggested Citation