Real estate boss warns of 30 per cent rent hikes if negative gearing changes are brought in
A real estate boss has warned landlords may hike rents by up to 30 per cent if proposed changes to negative gearing come into effect.
Treasurer Jim Chalmers is likely to announce sweeping reforms to negative gearing and capital gains tax in tonight’s federal budget as the Albanese government looks to tackle issues of housing affordability.
It is not known how much the government will change negative gearing, a generous tax break that allows an investor to deduct expenses related to properties from their taxable income, meaning they pay less at tax time.
Although the changes could result in lower prices, Nathan Birch from property investment firm Blink Property said renters would feel the pinch from any changes, and warned it could be immediate.
