Negative Gearing

Written by Claude Haiku 4.5 from the extracted text on 28 Feb 2026. It can miss or misread redacted and scanned pages. Check the source before relying on it.

This is a Question time brief from Treasury dated September 2024 supporting ministerial responses on negative gearing policy. The brief confirms the Government has no plans to change negative gearing arrangements, while reaffirming commitment to broader housing reform. It provides factual context: 1.1 million people were negatively geared in 2020-21, with rental loss deductions providing approximately $2.7 billion in tax benefits that year. National dwelling prices rose 7.1 per cent to August 2024. The brief attributes housing affordability challenges primarily to insufficient supply rather than tax settings, noting that planning systems, construction capacity, and interest rates have more significant effects on the housing market than taxation policy. The document frames negative gearing within Australia's broader tax principle allowing deductions for expenses incurred in generating assessable income.