Negative gearing losses surge

The ATO’s Taxation Statistics for 2017-18 have been released, which shows that the number of negatively geared property investors rose by 200,000 over FY18, with total losses ballooning by $800 million to $13.1 billion:

The average loss per negatively geared investors was $9,924 in FY18, up from $9,461 in FY17.

The below table also shows a lift in the number of people with multiple investment properties:

Tax experts expect negative gearing losses to surge due to COVID-19, given the collapse in advertised rents, soaring vacancy rates, as well as non-payments by financially stricken tenants (assisted by eviction bans).

However, it will take two years for this to be reflected in the ATO Taxation Statistics data.

Leith van Onselen
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