516 | The Alternatives to Abolishing Negative Gearing (LIVE)

Free Stuff  

• Missed last week’s episode? Catch up now as we unpack The Truth About Negative Gearing and Capital Gains Tax (CGT) — two major pillars of property investment in Australia.

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Questions We Answer

Q1) Is it a simple as that? From Andrew M

So if 71% (approx. from memory) only buy 1 property and then it quickly declines when you look at 2 and 3 etc. Why do we keep coming back to this argument…is it because it only affects a small amount of people but the rhetoric is good for votes…is it as simple as that?

Q2) How many Australians are affected by negative gearing? From Ashisain

At the end of the day, this is for politics…do we know how many people in Aus are affected by negative gearing? It can’t be substantial enough to affect election outcome.. (individual voters numbers)

Q3) The million-dollar question from Brett A

So the million dollar question is: How do you get politicians to lift their eyes beyond an election cycle?

Q4) How much tax is generated for the government by positively geared properties? From Tyrone P

We know how much negative gearing costs the govt in taxes but do we understand how much tax is generated for govt by positively geared properties? How would abolishing it affect that govt income?

Related graph:

Timestamps  

• 0:00 – The Alternatives to Abolishing Negative Gearing (Part 2)  
• 0:43 – Download the slides from Ep 515 | The Truth About Negative Gearing & Capital Gains Tax!  
• 3:37 – Ep 515 Recap: Everyday Aussies will miss out  
• 5:28 – Q1) Is it as simple as that?  
• 8:16 – Who are the people investing in 1 or 2 properties?  
• 9:53 – Negative gearing is a tax outcome  
• 11:04 – Q2) How many Australians are affected by negative gearing? From Ashisain & Q3) The million-dollar question  
• 11:42 – “Elections are all about looking in the margins”  
• 12:12 – ATO: How many people have seats and are affected by negative gearing? 
• 13:42 – How have we found ourselves here  
• 15:05 – Q4) How much tax is generated for the government by positively geared properties?  
• 16:28 – The net amount of property investors profiting and loss  
• 20:39 – Think Tank: The alternatives to abolishing negative gearing  
• 22:50 – The 1% Rezoning Rule  
• 25:19 – Land Release Scheduling  
• 27:18 – Higher Density Zoning  
• 26:16 – Reduce State Gov Taxes & Charges 
• 32:33 – Land Lease Communities  
• 36:20 – Household Size Formation 
• 38:12 – Accessing Super for a Deposit  
• 40:29 – Reduced Build Costs  
• 45:57 – Future Concepts: A pay-to-play fee  
• 48:22 – Selling airspace to increase density  
• 50:25 – Properties Don’t Disappear: Forecasting rental property demand 
• 54:17 – Rental Supply & Affordability Ideas
• 56:25 – Going for granny flats & tiny homes 
• 57:109 – Ageing and Students: It’s not a room shortage, it’s a housing shortage!  
• 1:00:27 – Encouraging Build-to-Rent 
• 1:00:50 – Protecting the public and providing social housing  
• 1:03:01 – Recap: Knowledge is empowering but ONLY if you act on it.