Will the Negative Gearing Rules be changed ?

We are discussing both sides of the argument for and against changes to Negative Gearing in Australia in a Series. Our purpose is to prepare Property Investors for the possibilities of these Tax changes, and thereby create an effective, overall strategy to deal with them. Property Investors should actively prepare for the eventuality of significant Property Tax changes. It is better to be prepared than taken by surprise.

In a recent article in the Sydney Morning Herald by Daryl Dixon entitled,

Prepare for changes to negative gearing and capital gains tax

"The severity of the impact on real estate investors depends on how market sensitive the changes are. The worst case would be if the changes were to apply to both existing and new investors when interest rates are rising and property prices are stagnant or falling."

The problem for Property Investors is that it is difficult to create a Strategic Cashflow Management Plan with the uncertainty created by considering the worst case scenario. Yet contingency plans should be outlined with your Accountant for possible changes to negative gearing and Capital Gains Tax.

Will the proposed changes to Negative Gearing affect current and new Property Investors ?

The above article comments on this,

"Any changes are therefore likely to apply only to new investors and impact only on future demand for property. Current investors retaining their tax advantages will only be affected if the changes adversely impact on the future returns on their investments."

Will the proposed changes to Negative Gearing be retrospective ?

Most commentators indicate that the proposed changes to Negative Gearing are likely just to target new investors only.

Would you like assistance to prepare for, and create a strategy to deal with, possible changes to the Negative Gearing rules ?

Phone 1300 541 777 for more information.

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Disclaimer :

This article is not to be taken as direct advice for your individual situation. Consult with an Accountant for Negative Gearing and Capital Gains Tax advice, and for any questions you may have on the proposed changes and related issues.