Originally published for Crikey
“While a large number of people take advantage of negative gearing for residential investment properties in Australia, the majority of the benefits are more narrowly focused.” says The Australia Institute following their research paper into the demographics of negative gearing and who is claiming benefits from the tax breaks associated.
“An analysis of the data shows that taxable income and the proportion of people undertaking negative gearing are correlated. As income increases so does the number of people undertaking negative gearing. Taxable income and net rental loss are also correlated. As income rises the amount deducted because of negative gearing also rises.”
This infographic looks at exactly who is benefiting the most from these tax breaks:
Rent,
Cobba