Talks test the water on negative gearing change
Read more: http://www.smh.com.au/national/talk...ring-change-20110420-1doxq.html#ixzz1K6OPzkRX
If a tax was bought in to charge those with large property portfolios it has the potential to do some serious damage.
For example if I recall Nathan's numbers he has $6m worth of property; a 1% land tax on the lot (due to the excessive number he holds) could wipe out their positive cash flow which he estimated at $60k pa.*
*If you're reading this Nathan, I was just using your particular situation as an example. No offense intended
THE Gillard government has sounded out unions over steps to cool Australia's housing market, with measures that range from a new sales tax for investors sitting on large property portfolios, to curbing the popular strategy of using negative gearing for multiple properties.
Senior federal Labor figures and key union backers are believed to have discussed the plan as a way to tackle housing affordability. Details of the proposals, which would apply to home owners with two or more investment properties, have not yet been developed. The talks come before a tax summit planned for later this year.
Read more: http://www.smh.com.au/national/talk...ring-change-20110420-1doxq.html#ixzz1K6OPzkRX
If a tax was bought in to charge those with large property portfolios it has the potential to do some serious damage.
For example if I recall Nathan's numbers he has $6m worth of property; a 1% land tax on the lot (due to the excessive number he holds) could wipe out their positive cash flow which he estimated at $60k pa.*
*If you're reading this Nathan, I was just using your particular situation as an example. No offense intended