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.
Below are key extracts from this report:
