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Negative gearing: separating fact from fiction
Published on 01 Mar 17 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
Negative gearing is commonly understood among the wider public to mean a concession in the tax law that allows a taxpayer to deduct a loss made on a geared residential rental property against other income, thereby reducing the taxpayer’s tax exposure. However, as practitioners, we know that this understanding is misconceived. It also misses the broader policy context within which negative gearing exists. The poor quality of the discourse on negative gearing in the lead up to last year’s election was disappointing. It was apparent that it had been an unexamined subject for so long that myths had solidified into truths in the minds of both defenders and detractors. While the re-election of the government means there will be no changes to negative gearing for now, it is clear that the subject is not going to go away. This article examines the various claims made about one of the most controversial tax policies in Australia’s history, and in doing so, reveals an opportunity for a value-added client service.
Author profile
David Montani CTA
David Montani, CTA, is National Head of Technical Tax – Private Enterprise at Grant Thornton. He has over 30 years’ experience, with over 20 of those in specialist tax advisory. In his role with GT, David delivers practical tax training, mentors staff, provides tax technical support on significant client engagements, and assists with quality and excellence protocols. - Current at 13 November 2025
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