The Australian reports:
THE vast majority of property investors taking advantage of negative gearing are “mum and dads” earning less than $80,000 a year, countering the long-held view that the property investment measure was a tax lurk for the rich.
That is consistent with some analysis I did a few years ago, but didn’t get around to writing up. Looking at ATO statistics for the financial year 2008-09 I calculated who was benefiting from negative gearing.
The graph shows cumulative share of taxpayers declaring net rent income (both the number and the dollar amount).
Eighty per cent of taxpayers declaring net rent as income earn less than $80,000. While 80% of the dollar figure for net rent is earned by taxpayers earning less than $100,000.