Negative gearing has been a hot topic in the election campaign.
Travel deductions had been "probably the biggest lurk” among the expenses claimed by landlords, says Grattan Institute fellow Brendan Coates.
He goes on to say, "There’s certainly lots of
anecdotal evidence where people had investment properties on the Sunshine Coast
or the Gold Coast and it was convenient to be able to head up for the weekend
and check everything was OK and have a nice holiday at the same time,”
"Office
expenses for having investment property should be pretty small. It doesn’t take
a lot of time to manage the investment property, but surprisingly across
Australia you’re spending $40 million.”
It
made sense that interest on loans was the largest deduction, while capital
works also made sense, he said.
"The
broader point is does it make sense for us to be allowing interest deductions
on wage or salary income on existing property? We’ve come to the conclusion
it’s probably not."
"Office
expenses for having investment property should be pretty small. It doesn’t take
a lot of time to manage the investment property, but surprisingly across
Australia you’re spending $40 million.”
Source: https://www.afr.com/personal-finance/tax/revealed-the-expenses-claimed-by-negatively-gearing-landlords-20190517-p51oaj
Marlene Liontis
Tuesday, 21 May 2019
