There’s plenty of discussion around on possible changes to negative gearing tax laws as the Turnbull Government seeks to reform the tax system, so what are the suburbs in Melbourne that would feel the effects of losing negative gearing the most?
Across the State there are 304,000 Victorian investors who negatively gear.
According to the Property Council of Victoria, a lot of investors who negatively gear do so in higher-end suburbs in outer regions such as Werribee, Sydenham, Rowville and Craigieburn.
Property Council of Victoria executive director Jennifer Cunich painted a bit of a picture of negative gearing investors in Victoria when she spoke to The Age.
“Our data collection tells us that the vast majority of those earn around, or under, $80,000 per annum,” she said.
“We have some key professions from the Australian Taxation Office stats – the types of workers we are talking about are emergency services workers, teachers, child carers and nurses.”
“I think there are a couple of motivations – one might be ‘we can get a tax break and negatively gear’, but I think now, for the majority, it’s a foothold in the market and they can use that to maybe, one day, have enough equity to purchase a property in the area in which they work.”
Top ten suburbs and towns where investors use negative gearing
Werribee/Point Cook (5625)
Glen Waverley (4060)