What the Labor party proposes to do:
- Eliminate negative gearing to all residential investment properties other than new housing from the 1st of July 2017.
- Stop investors from claiming losses on second hand properties against their wage income after that date.
- All investment properties purchased prior to this date will be “grandfathered” (meaning any current tax arrangement with your investment property will remain).
- Reduce the Capital Gains discount on all investment properties from 50% to 25%.
Keep your eyes peeled for next week’s article where we will discuss the impact of the above!