The Reserve Bank of Australia (RBA) yesterday afternoon released its submission to the House of Representative’s Inquiry into Home Ownership, which urged the Government to re-consider Australia’s negative gearing system and the capital gains tax (CGT) discount, and debunked the myth that negative gearing is utilised primarily by middle-income households:
Australia’s taxation system is… relatively generous to small investors in buy-‐to-‐let property compared with some other countries, because investors can deduct losses from their investments against wage income as well as other property income, and because capital gains are taxed at concessional rates…
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Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
