AHURI arrives too late to the negative gearing reform party
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The Australian Housing & Urban Research Institute (AHURI) has released a paper proposing changes to the negative gearing regime for property investors, including applying a means test so that the top 25% of income earners would not have access to tax deductions for rental losses, while those on middle incomes would be entitled to a 50% deduction and low-income earners would receive a 100% deduction. The AHURI’s modelling has also examined the effect of introducing a monetary-based cap on rental deductions.
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.