Modelling from the Parliamentary Budget Office (PBO) forecasts that negative gearing costs are likely to double as interest rates rise and could potentially triple over the next decade.
When combined with the capital gains tax discount, property investor tax concessions are projected to exceed $20 billion a year by 2032-33:
[The PBO] estimated that negative gearing would drain $12.7 billion from budget revenue in 2023-33 at the current cash rate of 2.85 per cent.
