Mortgage broker Maria Papa explains in easier terms the concept of negative gearing used by property investors to minimise tax payments. She also discusses the current efforts of the government to restrict claim of expenses, such as travel to the property site for regular inspection, so investors can not abuse it.
How Negative Gearing Works
Negative gearing has been in operation in Australia for some time. It's used by property investors to the detriment of increasing houses in the country, and is now being regulated by the government. Image: Australian Taxation Office (AAP)
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