Digital Finance Analytics (DFA) Blog
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Interesting to see the momentum now turning to discussion of whether the Government intends to tackle negative gearing having U-turned on the tax cuts. As The Conversation put it, there are two things the prime minister needs to get into his head about tax. One is that saying he won’t make any further changes no … Continue reading “Is Negative Gearing The Next Target?”
Interesting to see the momentum now turning to discussion of whether the Government intends to tackle negative gearing having U-turned on the tax cuts. As The Conversation put it, there are two things the prime minister needs to get into his head about tax. One is that saying he won’t make any further changes no … Continue reading “Is Negative Gearing The Next Target?”
From The Conversation. When you want to take back a multibillion-dollar giveaway to the country’s wealthiest, expect them to put up a fight. The Labor Party’s proposal to reduce the tax advantages of being a landlord by limiting negative gearing to new homes has become the new enemy of the landlord class, who are arming … Continue reading “The Game of Homes: how the vested interests lie about negative gearing”
From The Conversation. Reforming negative gearing could save the federal government A$1.7 billion without hurting “mum and dad investors”, according to our new modelling, by focusing tax deductions on investors with smaller property portfolios and removing them for richer investors. Combined with changes to capital gains tax, reforming negative gearing could make the Australian housing … Continue reading “Negative Gearing Reforms Could Save A$1.7 Billion Without Hurting Poorer Investors”
More evidence that negative gearing should be revised was contained in a preliminary paper released recently, having been discussed with the RBA in November. Melbourne University researchers Yunho Cho, Shuyun May Li, and Lawrence Uren suggest their modelling shows that the removal of negative gearing would potentially lift homeownership rates by 5.5%, and that “renters … Continue reading “Removal of Negative Gearing Would LIFT Home Ownership”
From The Conversation. Labor MPs might be rubbing their hands together with glee at a Treasury memo that shows the federal opposition’s negative gearing policy will have a “small” impact on the property market. But insights from behavioural public policy, as highlighted by the 2017 Economics Nobel laureate – Richard Thaler and his colleague Cass … Continue reading “Treasury memo misses the real impact of Labor’s negative gearing policy”
The FOI release, which the ABC covered yesterday, highlighted “the Coalition’s phoney defence of negative gearing and capital gains tax discounts before the last election”. A number of economists at the time disputed the claims that winding back those two tax write-offs would “take a sledgehammer” to property prices because “a third of demand” would … Continue reading “The Fall Out From The Negative Gearing Expose”
The ABC is reporting that a Treasury FOI request has shown that Federal Labor’s negative gearing overhaul would likely have a “small” impact on home values, official documents reveal, contradicting Government claims the policy would “smash” Australia’s housing market. The previously confidential advice to Treasurer Scott Morrison from his own department said the Opposition’s plan … Continue reading “Proposed Negative Gearing Changes Only Minor Impact”
From Financial Standard. KPMG warns any increase in Australia’s historically low interest rates would cause serious economic problems and affect households across the entire financial spectrum, from rich to poor. The industry consultant said one of its biggest concerns is that Australian households have progressively increased debt levels at rates faster than their disposable incomes … Continue reading “Negative gearing exposing Australia’s poor: KPMG”
The ATO released their summary FY15 data this week, and included quite comprehensive summaries of the range of costs those with rental properties have offset income. They also divide rentals into those functioning at a loss, and those who make a profit. Of the 2.9 million rentals, 1.1 million made a profit, the rest a … Continue reading “Negative Gearing In Action”