Top Gears: How negative gearing and the capital gains tax discount benefit drive up house prices
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Modelling from NATSEM featured in a new report from The Australia Institute, commissioned by GetUp, reveals that more than half (55%) of the benefit of capital gains discount and negative gearing goes to the top 10% of income earners.
Australia is one of only three OECD countries with this type of negative gearing regime. Working together with the capital gains tax discount, Australian taxpayers are being hit for $7.7 billion, which is going overwhelmingly to the wealthy, and is driving families out of the housing market.
Top Gears: How negative gearing and the capital gains tax discount benefit the top 10 per cent and drive up house prices, commissioned by GetUp, showed that one third (34%) of the benefits of negative gearing were captured by the top 10%, while a staggering three quarters (73%) of capital gains discount went to the top 10%.