Negative gearing applies to all forms of investment, not just property investment.
Negative gearing has been in place for as long as we have had a federal income tax system – over 100 years.
Around 2 million Australians own an investment property.
1.2 million negatively gear their investment property.
The cost to the budget of negative gearing is dropping. Net rental losses from investment properties have fallen from $7.9 billion in 2011-12 to $3.7 billion in 2013-14. This is a drop of 53% in two years.
Over 770,000 Australians with taxable incomes below $80,000 a year negatively gear investment properties.
This includes 89,800 clerical workers, 48,900 teachers, 37,000 nurses and midwives, and 9,100 emergency services workers.
The average net rental loss claimed is $8,700 per year (down from $9,500 in 2012-13).
72.8% of investors own only one investment property, while an additional 18% own two properties.
58% of deductions by value go to Australians with taxable income less than $80,000. Only 13% go to those with taxable incomes above $200,000.
47% of investment properties are owned by women, and women account for 45% of all those who negatively gear their investment property.
One third of newly constructed housing is purchased by investors.