Document undermines Government position on negative gearing
THE Federal Government has argued negative gearing largely benefits average Australians despite being advised otherwise months ago, a document obtained by the ABC reveals.
Negative gearing allows investors - notably property investors - to deduct losses against other sources of income, such as wages.
Federal Labor earlier this year vowed to go after the tax deduction if elected, by restricting it to new properties from mid-2017.
A Treasury document obtained by the ABC under Freedom of Information (FOI) shows most of the windfall from the property tax break goes to high-income earners.
The modelling said more than half of the negative gearing tax benefits go to the top 20 per cent of incomes in Australia.
Read more at ABC News Online