Negative gearing
Cheap Money Nearly Switched Off Negative Gearing. The Rate Rise Switched It Back On.
In 2021–22, with the cash rate at a record-low 0.10%, the share of Australian landlords reporting a rental loss fell to 41.9% — the lowest in a quarter-century of tax records — and their combined losses shrank to $5.98 billion. Two years later, after the Reserve Bank lifted the cash rate to 4.35%, 1.27 million landlords were negatively geared again, within 4.4% of its 2017–18 peak, and their losses had jumped to $15.22 billion. No tax law changed in between.
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