104
Greens decry property tax breaks costing 78 times what Labor proposes to spend on social housing
(www.theguardian.com)
this post was submitted on 03 Aug 2023
104 points (99.1% liked)
Australia
3582 readers
52 users here now
A place to discuss Australia and important Australian issues.
Before you post:
If you're posting anything related to:
- The Environment, post it to Aussie Environment
- Politics, post it to Australian Politics
- World News/Events, post it to World News
- A question to Australians (from outside) post it to Ask an Australian
If you're posting Australian News (not opinion or discussion pieces) post it to Australian News
Rules
This community is run under the rules of aussie.zone. In addition to those rules:
- When posting news articles use the source headline and place your commentary in a separate comment
Banner Photo
Congratulations to @[email protected] who had the most upvoted submission to our banner photo competition
Recommended and Related Communities
Be sure to check out and subscribe to our related communities on aussie.zone:
- Australian News
- World News (from an Australian Perspective)
- Australian Politics
- Aussie Environment
- Ask an Australian
- AusFinance
- Pictures
- AusLegal
- Aussie Frugal Living
- Cars (Australia)
- Coffee
- Chat
- Aussie Zone Meta
- bapcsalesaustralia
- Food Australia
- Aussie Memes
Plus other communities for sport and major cities.
https://aussie.zone/communities
Moderation
Since Kbin doesn't show Lemmy Moderators, I'll list them here. Also note that Kbin does not distinguish moderator comments.
Additionally, we have our instance admins: @[email protected] and @[email protected]
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
I thought the central "lie" of negative gearing was that landlords could spend money improving their properties, claim the rent received on said property could never cover the cost of said improvements but in reality be accruing massive capital gains on said property - which will never be taxed until the sale of the property. In the meantime the money spent on these improvements can reduce the owner's income tax, potentially to zero, despite the owner accruing massive wealth (via increases in property value intrinsic to the market and extrinsic via the improvements made to said property) that will not be taxed. Am I missing something?
In that case, if the renovation wasn't deducted off primary income by negative gearing, it would be deducted off the CGT tax when the property is sold as it could count as a capital expense.
https://www.ato.gov.au/Individuals/Capital-gains-tax/Property-and-capital-gains-tax/CGT-when-selling-your-rental-property/#Capitalexpenses
IF the property is sold. In the meantime little or no tax is paid by the owner, and millions of people are priced out of the market. The owner however can borrow against the higher estimated value of their property and purchase more property to pull the same moves again. Wealth concentrates towards the rich, inequality increases.
I'm not sure what point you're making, but someone sitting on 10 properties with a total networth of $20M cannot spent any of that until they sell the property. That's $20M is on paper wealth. That $20M only becomes real wealth when they sell up, at which point it attracts CGT.