Negative gearing – some home-truths behind the figures

People in wealthier occupations are much more likely to use negative-gearing, according to Greg Jericho, writing in The Guardian.

When the annual taxation statistics were published in late April, the general media crowed that most negative gearers earned below $80,000.

However, Jericho writes, ‘of the nearly 400,000 people who are chief executives, executives or general managers, 18% claimed a rental loss, compared with 13% of the just over 700,000 school teachers, midwives and nurses.

‘Anaesthetists and surgeons – the two occupations with the highest median incomes, love to negative gear – 30% of anaesthetists, and 29% of surgeons do so.

‘And over the past four years, the big growth in negative gearing has been by those owning multiple properties’.

https://www.theguardian.com/commentisfree/2018/apr/29/so-most-negative-gearers-earn-below-80000-well-heres-the-catch

The chart – courtesy ABC.net.au – shows that the proportion of negative gearers is highest among two groups: medical practitioners and air/marine transport professionals.

http://www.abc.net.au/news/2018-05-02/chart-of-the-day-proportion-of-people-using-negative-gearing/9718618

Courtesy abc.net.au