Australia has 2,156,319 property investors, most of whom own just one property, according to the ATO.

The ATO figures show that 71% of people who own investment property have just one, while a further 19% own two properties. Less than 1% of investors own five properties and less than 1% own six or more properties.

It is this “six or more” investor demographic that has attracted the attention of Opposition Leader Bill Shorten in his pursuit of negative gearing changes, even though they are 0.9% of investors.

Shorten has conceded that Labor’s negative gearing/capital gains tax reforms are not “universally loved”.

There are 1,300,344 individuals (in Australia) who own loss-making rental properties and 855,975 individuals who are in a rent neutral/profit situation with their rental investment and therefore do not claim negative gearing tax refunds.

Analysis of the impact of Labor’s negative gearing policy by SWM Research suggests likely outcomes include a shortage of rental properties in the major cities, causing significant increases in residential rentals.

By Terry Ryder