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A Grattan Institute report into negative gearing confirms that wealthy professionals will continue to build wealth at the expense of working people if the policy is maintained in its current form.

Hot property: negative gearing and capital gains tax reform relies on tax office data to find the top 10 per cent of earners collect almost half the negative gearing tax deductions and three quarters of the concessionally-taxed capital gains.

And it finds the two concessions cost the federal budget a combined $11 billion per year.

“The Liberals are quite content to concentrate ever greater tax advantages into the hands of ever fewer people,” Unions NSW Secretary, Mark Morey said.

“The purpose of our tax system ought to be increasing economic opportunity and allowing for a fair distribution of the tax burden. In fact, Malcolm Turnbull wants to continue borrowing money to extend the lead of a privileged few.

“Unless negative gearing is reformed, surgeons, lawyers and bankers will continue to gallop ahead, leaving the rest of us in their wake. The top ten percent of income earners do not need an extra leg up from the Commonwealth Government.

 

Read more: http://www.smh.com.au/business/federal-budget/federal-budget-2016-top-earners-benefit-most-from-negative-gearing-grattan-institute-finds-20160425-goeef5.html

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