The latest Australian Tax Office stats are out and they show that negative gearing was in retreat during the pandemic.
The data, covering the financial year from July 2021 to June 30, 2022, shows landlords making money hand over fist. They made a collective $118 million — on average a profit of $2,571 per landlord. For comparison, in 2014 they lost a collective $69 million — on average a loss of $1,717 per landlord.
You can’t negatively gear a property that’s making money! So the great negative gearing tax deduction strategy was much less used in 2021-22. More than half of landlords slipped into profit-making territory, far more than in 2014.
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