The Property Couch

21 |The Negative Gearing Debate in Australia

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Jul 24, 2015
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INSIGHT

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.
ADVICE

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.
INSIGHT

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.
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