Negative Gearing hot potato or poison pill?

Negative Gearing – hot potato or poison pill?

Negative Gearing hot potato or poison pill?

In Australia over the last 30 years, any spending in pursuit of rental income from an investment property is tax-deductible, unless the spending is of a capital or private/domestic nature. This is known as ‘negative gearing’.

The owner can claim a deduction for the cost of repairing an investment property, but not initial repairs when the property was first purchased.

Some commentators think that negative gearing has distorted the housing market. They point to negative gearing as one of the main factors in housing affordability having halved in real terms over the last 30 years since negative gearing has been in place.

Verification of ID

Verification of ID

Verification of ID

State Governments and authorities around Australia have introduced mandatory Verification of Identity (VOI) policies. These policies help to protect all the parties in a variety of legal and business transactions against fraud.

Mandatory VOI policies are now in place in South Australia, Victoria and Western Australia. Similar policies are set to be introduced in New South Wales in 2016, with the remaining states and territories likely to follow shortly.
This overlaps with anti-money-laundering legislation, and various banking & finance protocols and policies.

death-and-taxes-ahead-in-sa

Death and Taxes Ahead in SA

death-and-taxes-ahead-in-sa

Australia is the only western democracy in the world not to have some form of death duty. The USA, Canada, England, Scotland, Ireland and New Zealand all have inheritance taxes.

Until the 1970’s each state and territory in Australia had some form of death duty or inheritance tax. But then Joh Bjelke Peterson as premier of Queensland abolished them in that state, and every other state government soon followed suit to remain competitive.

All State and Federal Governments are desperately looking to raise revenue in these difficult economic times, and every recent review of our tax system suggests that some form of inheritance tax will be back on the table.