How the most affluent Australians disproportionately benefit from negative gearing

Negative gearing is a tax concession where investors can deduct losses from investment properties from their other taxable income. Photograph: BeyondImages/Getty Images

Negative gearing helps high-earning Australians the most, with those with income of more than $180,000 annually snaring almost one-quarter of the benefits, despite numbering just 5% of taxpayers.

Data from the Australian Taxation Office showed people who earn more than $180,000 were able to lower their collective tax bill by $1.3bn in 2021-2022 through negative gearing. The $1.3bn was roughly 25% of all the losses on rental properties claimed by taxpayers in that financial year.