Negative gearing on short-stay rentals costs Australia up to $556m a year, report estimates

A report by Everybody’s Home has found tax breaks for investors with short-stay properties could be costing taxpayers hundreds of millions of dollars a year. Photograph: Darren England/AAP

Tax breaks for investors using houses as short-stay accommodation could be costing Australian taxpayers hundreds of millions of dollars per year, according to a new report by Everybody’s Home.

The short-stay subsidy report estimates that the budget could be losing between $111m and $556m in forgone revenue this financial year through negative gearing deductions claimed on short-stay rental properties.