Do most negative gearers earn a modest income?

82 per cent of all taxpayers have taxable incomes below $80,000, it is not surprising that most of the negative gearers fall into this category.

For those interested here is the link
Fact check: Do most negative gearers earn a modest income?

Who uses negative gearing?
Australian Taxation Office (ATO) data shows that of the 12.78 million Australians who filed a tax return, 10 per cent (1.26 million) were negatively geared in terms of rental property, which meant they recorded net losses on rental properties.

The data shows that around 82 per cent of people who filed a tax return have a taxable income of less than $80,000 and around 8 per cent of them use negative gearing.

In contrast, 18 per cent of tax filers earn more than $80,000 but 18 per cent of them use negative gearing, more than double the proportion of those earning less than $80,000.

Of the three professions highlighted by Mr Morrison, the ATO tax statistics show that police were most likely to use negative gearing, with 23 per cent (13,090) recording net rental losses, followed by 14 per cent (55,795) of teachers and 12 per cent (37,165) of nurses (table).

Number who filed a tax return % of all taxpayers Number who use negative gearing % who use negative gearing in each category
All taxpayers 12.78 million 100 per cent 1.26 million 10 per cent
Taxable income below $80,000 10.41 million 82 per cent 838,675 8 per cent
Taxable income above $80,000 2.37 million 18 per cent 421,850 18 per cent
Nurses and midwives 302,190 2.4 per cent 37,165 12 per cent
Teachers* 386,920 3.0 per cent 55,795 14 per cent
Police 57,945 0.5 per cent 13,090 23 per cent

SOURCE: ATO tax statistics, individual tables, *includes school principals, early childhood, primary, secondary and other school teachers

 

Nurses, Teachers and Police. If they are experienced they are all on 80K+ (assuming the nurse works in a public hospital). I know several nurses on six figure salaries (nurse managers) and there are also other benefits, such as salary sacrifice into your mortgage etc. Likewise teachers if they are principals or work at private schools can also be on six figure salaries. Police are the best paid out of the lot.

However, the most advantageous condition about these occupations is their job security. It's that job security that gives them the confidence to negative gear as they have a stable, reliable income.

 

And under the current credit regime the would be limited to 1 or 2 IPs and the government wants us to provide for our own retirement ideally. They dont realy make it that conducive to the average punter imo.

I can vouch for that as have clients with those exact occupations and banks do like them as clients as employment is stable compared to other industries.

 

yep, thats right. Its the stability thats the main drawcard for them.
I work in the private sector and dont know if my job is going to be around even tommorow!...but that risk and uncertainty is compensated

 

The figures mean nothing. They are taxable income (ie after any Nging).

 

You need gross income, income before rental losses and other deductions.

 

Exactly, these income figures are meaningless since they have already been distorted by NG.

Kind of like saying Donald Trump should be on food stamps because he had no taxable income for 18 years.

 

oh gaaawd @MTR ..really...another NG debate...

 

LOL
Nice avatar, loving the wolf of wallstreet

 

Thanks

But I promise no wolf here. I'm a sheep....

or was that a wolf dressed in sheep clothes.. I get confused now and again..