Negative Gearing

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**Document Types:** Question time brief (prepared jointly by Treasury and Minister's Office) **Policy Measure:** Negative gearing tax arrangements **Key Findings:** As of 2020-21, 1.1 million Australians claimed rental losses (negative gearing), representing about half of all rental deduction claimants. The associated tax deductions provided approximately $2.7 billion in tax benefits that year. National dwelling prices rose 7.1 per cent through August 2024. Treasury notes that while tax settings including negative gearing and capital gains tax discounts affect housing outcomes, other factors—planning systems, construction capacity, and interest rates—have more significant effects on the housing market. Supply constraints are identified as the primary driver of affordability issues. **Government Position:** The Government has no plans to change negative gearing arrangements, despite advocacy from the Australia Institute and international figures like Professor Stiglitz arguing such arrangements primarily benefit