Talking tax reform: Property | Deloitte Australia | Tax | Insights has been added to your bookmarks.
Talking tax reform: Property
The practice of “negative gearing” has provoked strong responses from many special interest groups, principally around questions of equity and housing affordability. The principal thrust of the Tax Discussion Paper is both to support negative gearing and to debunk a number of the popular myths around the deductibility of interest payments.
The paper points out that the potential tax advantage will often be greater on the disposal side due to the discounted CGT rate (this is particularly the case at present with good capital growth and a low interest rate environment).