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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 in specialist tax advisory, and is the author of Tax Wars: The bluster, bulldust and bedlam behind Australia’s tax reform gridlock. - Current at 13 April 2026
The Tax Institute is Australia's leading professional association and educator in tax providing the best resources, professional development and networks.