A Treasury report released under Freedom of Information has found over half of all negative gearing tax benefits aid our top twenty percent of income earners and the top ten percent of income earners gain 75 percent of the capital gains tax concessions.
Despite claims by the coalition that Mums & Dads and average wage earners were the main beneficiary, the report states “Negative gearing benefits high-income families,” and the capital gains discount “overwhelmingly benefits high-income families.”
The lowest twenty percent of income earners only obtain 5 per cent of all benefits under the generous negative gearing scheme, costing the budget billions of dollars each year.
It is understood the report is written by ANU’s associate professor, Ben Phillips for Treasury, and the government had known about the contents of the report for three months, while fiercely maintaining it’s claim that negative gearing benefits average wage earners.
The report, which the coalition tried to keep secret, found Labor’s plan to quarantine negative gearing to new properties and reduce the capital gains discount from 50 per cent to 25 per cent would save the Australian taxpayer approximately $6 billion a year.
» Government hides the truth on Negative Gearing – My Sunshine Coast, 18th June 2016.
» Election 2016: Government maintains negative gearing stance despite Treasury documents – The ABC, 18th June 2016.
» Labor seizes on Treasury advice that wealthy get most from negative gearing – The Guardian, 18th June 2015.