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Negative Gearing Is A Broad Tax Tool
- Negative gearing is a mainstream tax treatment for borrowing across many businesses, not just property investments.
- Ben Kingsley emphasises it's part of the tax system's fabric and not unique to real estate.
Plan For Positive Cashflow
- Don’t assume property will stay loss-making; plan for it to become positively geared over time.
- Focus on long-term returns and exit into passive income rather than short-term loss acceptance.
Policy Changes Ripple Through Revenues
- Scrapping negative gearing could reduce investor activity, lowering transactions and stamp duty revenue for states.
- Ben argues lost upfront revenue may be recouped later via capital gains tax and future taxable passive income.