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Australia Plans to Scale Back Investor Tax Breaks on Housing
The Australian government intends to reduce tax concessions for property investors. Officials say the changes address rising rents and treat housing as shelter rather than an investment vehicle. Existing property owners will retain current benefits under the proposed rules.
May 25, 7:00 PM·1m read1 source
The GuardianAudio version
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The government plans to limit tax concessions that allow property investors to deduct losses against other income. Officials stated the measures respond to a decade of rising rents across the country. National data show weekly rents for houses have increased by about $450 over the past ten years.
In capital cities the average weekly increase reached $500, adding roughly $25,000 in annual housing costs for many households.
Under existing rules, investors who report losses on rental properties can offset those losses against wage income. The government intends to scale back this arrangement for new purchases while preserving benefits for properties already owned. The same statement noted that the changes will not apply retroactively to current owners.
Representatives of the property sector have warned that limiting the concessions could lead to higher rents and reduced housing supply. Government officials countered that no evidence links the proposed limits to automatic rent increases. They added that any future rent hikes would result from decisions by individual landlords rather than from the policy change itself.
