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In Australia it's backwards and bonkers, the tax legislation is geared toward giving real-estate investment properties a bunch of tax breaks while someone livin
by ehnto 4y ago
In Australia it's backwards and bonkers, the tax legislation is geared toward giving real-estate investment properties a bunch of tax breaks while someone living in their home gets diddly squat.
I'm not necessarily saying we shouldn't pay tax on properties we live in, but I will say it's pretty on the nose to continue giving investment properties huge tax breaks while people are struggling to finance homes they live in or pay rent. The price inflation of homes caused by easy money and negative-gearing made easier due to lopsided tax policy makes the property market entirely detached from the average Australian.
- Panzer04 4y agoThis isn't really accurate. Homeowners get the enormous PPOR CGT exemption, which means they pay no capital gains on their primary home when they sell - This can be a massive amount of money in an up market (the past two decades, especially)
- ehnto 4y agoI appreciate the correction, but I feel that doesn't help people trying to live in their homes. We're not all climbing the property ladder after all.