Overview
- Treasury has modelled limiting negative gearing to two investment properties, with the capital gains tax discount also under review before the May 12 budget.
- Jim Chalmers acknowledged the analysis and said it is routine pre‑budget work, adding that any reform would be decided by cabinet.
- The Parliamentary Budget Office estimates negative gearing costs about $7 billion a year and the residential CGT discount $5.4 billion.
- Roughly 1.3 million Australians use negative gearing, and ATO analysis indicates just under 30% of these taxpayers hold two or more investment properties.
- The opposition has signalled it would oppose winding back these concessions, though Greens support could allow legislation to pass as arguments continue over affordability and rental supply.