Rental Property Loss added to means test

Discussion in 'Property Market Economics' started by D&K, 15th May, 2008.

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  1. D&K

    D&K Well-Known Member

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    The budget is full of surprises not really mentioned during the publicity and hype of Tuesday night. It seems that property investors who receive a range means tested governement benefits will have their rental property investment losses added to their incomes for assessment purposes:

    Treasurer's Press Release #46:

    "Net financial investment losses will be added to income in all applicable tax and transfer programs. Affected programs are family assistance, the Higher Education Loan Program and particular tax offsets. Net rental property losses will also be added to income for those programs where they are not already included.

    The reforms to income tests provide an overall saving to the budget of around $522 million over the next four years. " :(

    Press Release - Fairer Means-Testing of Government Support Programs [13/05/2008]

    So you may not get hit with extra tax but you will loose benefits. I can't see this helping to increase rental housing stock.

    Dave
     
    Last edited by a moderator: 15th May, 2008
    D&K, 15th May, 2008
    #1