CGT reform may fix Australia’s negative gearing problem: economists
As Labor mulls big budget changes, experts say increasing the tax on capital gains should cool investor demand for property before any cut to negative gearing.
An increase in capital gains tax will slash the effectiveness of borrowing strategies used by half of Australia’s 2 million landlords, reducing pressure to reform negative gearing rules.
Treasurer Jim Chalmers is considering changes to both tax measures in the May budget, but economists said increasing the tax on capital gains should cool investor demand for property before any cut to negative gearing.
