Everything you need to know about negative gearing

Our comprehensive guide to Australia’s unique tax concession

Negative gearing is a perennial source of debate in Australia. Supporters claim the tax concession bolsters the housing supply, encourages investment and keeps a lid on rents while detractors say it distorts the market and prices out first home buyers.The one thing most people seem able to agree on is that the argument over negative gearing isn’t going away anytime soon. So what is negative gearing, how does it work and why is it so controversial? Our comprehensive guide provides you all the information you need to know about one of Australia’s favourite sources of debate.

Find out the a-z of negative gearing

 

Negative gearing icon 1What is negative gearing?


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Our introductory guide introduces you to the ins and outs of this tax strategy and explains how it works.

Negative gearing icon 2What are the benefits of negative gearing?


Negative gearing investment property cash flow positive

A comprehensive case study demonstrates how you can make the strategy work for you.

Negative gearing 3Why negative gearing debates aren't over


arguing hands

The Federal Election may have been decided, but the argument over negative gearing will continue to rage.

Negative gearing icon 1How does Australia stack up to the rest of the world?


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Negative gearing is a fairly unique system. How does it stack up to housing tax concessions in the rest of the world?

Negative gearing icon 2Can negative gearing equal positive cash flow?


Negative gearing investment property cash flow positive

Just because you’re negatively geared, it doesn’t mean you have to lose money.

Negative gearing 3What would happen if negative gearing went away?


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We look at the “what if” scenarios for negative gearing.

The latest negative gearing news

Property investing tax strategies

Negative gearing is a strategy property investors use to offset their short-term losses in the pursuit of long-term capital gains. This requires the ability to absorb some cash flow losses, but a savvy investor can structure their property investment in such a way as to maximise its tax effectiveness.

Top tax tips for property investors.

Capital gains tax

Another important piece of the negative gearing puzzle is the capital gains tax (CGT) concession. This allows investors who have held their property for at least 12 months an exemption on 50% of their CGT bill. Coupled with negative gearing, the CGT discount makes property an extremely tax-effective investment strategy.

Minimising your CGT bill

Getting your foot on the property investment ladder

While property might be a tax-effective and attractive asset class for investment, first-time investors can feel intimidated by the perceived difficulty of buying their first property. Before you wade into the world of property investment, there are some important strategies to keep in mind.

Property investment strategies

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2 Responses

  1. Default Gravatar
    RaghuApril 26, 2016

    Hi,
    In the situation when I can’t find a tenant for my investment property and the property is left vacant for an extended period, Are the repayments made during this period tax deductible?

    Thanks,
    Raghu

    • Staff
      BelindaApril 26, 2016Staff

      Hi Raghu,

      Thanks for reaching out.

      You can still claim expenses for your investment property, such as the interest on loans, as long as the property is genuinely available for rent.

      According to the Australian Taxation Office (ATO), if a property is genuinely available for rent, it must be advertised to potential tenants and tenants must be reasonably likely to rent the property.
      For more details, please speak with a tax accountant or visit the ATO website.

      All the best,
      Belinda

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