Report: Richest Australians benefit most from negative gearing

As a new report reveals the inequality of tax cuts and concessions, national housing campaign Everybody’s Home is urging the Federal Government to reform the housing taxation system.

Anglicare Australia’s ‘A Costly Choice’ report has found the top 20 per cent of income earners will have received more than $42 billion in negative gearing and capital gains concessions and exemptions this financial year. 

In comparison, the people on the lowest incomes will benefit less than $4 billion.

Everybody’s Home spokesperson Maiy Azize said the system was grossly unfair.

“Housing tax breaks to landlords is widening inequality in Australia, overwhelmingly going to the richest Australians. The richest landlords are getting richer while renters pay the price,” Ms Azize said.

“The Federal Government has a choice – it is choosing to give away billions of dollars a year lining the pockets of investors instead of using this money to build desperately needed social and affordable homes. 

“Investors have choices – they can either write off losses on tax or pass them on to tenants by raising rents. Renters are the ones stuck with limited options.

“We need the Federal Government to phase out handouts like negative gearing and capital gains tax breaks. The Government must use the revenue raised to encourage investment in social and affordable housing. 

“That would be a fairer system that would give renters genuine choice and security.”

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