WATCH: Property investors lose out as Government ends negative gearing

PHOTO: Negative Gearing. SOURCE – Grandstand Real Estate

The Government has announced the practice of negative gearing on investment properties will end in 2019.

Investors can currently offset losses so that they pay tax against a smaller income, but the Government says negative gearing is simply a subsidy for property speculators, and from next year it will be gone.

“It’s distortionary in the property market.  We want to make sure first home buyers have a fair go,” Finance Minister Grant Roberson said.

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