Join our investing community

Negative gearing benefits cut

Discussion in 'Accounting, Tax & Legal' started by Simon Hampel, 25th Jun, 2007.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,619
    Location:
    Sydney, Australia
    From news.com.au:

    Negative gearing benefits cut | NEWS.com.au Business

     
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    I think you should clarify that getting a tax rate reduction does not make you worse off.

    However, the reduced 'tax shield' may make other more revenue positive investments more effective.

    As mentioned in the article, provided your property is a quality item then the increase in capital value more than compensates for the 'holding costs'. Also factor in the reduced CGT on disposal with the lower tax rates.

    Cheers,

    Rob
     
  3. FrankGrimes

    FrankGrimes Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    110
    Location:
    Sydney, NSW
    I'm middle income, 77k, therefore my tax is 30%.. While this isn't as good as it was (But I have more money in my pocket regardless?) I still get substantial tax relief for a good long term investment, none of us are in it purely for tax relief, it only makes a good investment - better!

    I'm finding news.com.au full of rubbish these days, especially in the business section.. I cringe reading some of the dribble they come out with.