The tax debate has intensified since Labor announced plans to limit negative gearing to new properties and trim capital gains tax discounts.

 

Analysis of Australian Taxation Office data has found that about 1.2 million people claim negative gearing tax deductions on investment properties. The most claims (400,000) come from those with taxable incomes between $40,000 and $70,000.

 

Wealthy investors are less likely to negatively gear residential property, preferring commercial properties, businesses and shares instead.

 

Labor’s plan would not affect existing investors and has been rejected by the Turnbull Government.

 

Property Council of Australia research shows that those who benefit from negative gearing include: 83,000 clerical staff, 61,000 teachers and child carers, 42,000 nursing and aged care workers, 46,000 sales assistants and 21,000 hospitality workers.