Man on the Money: Negative Gearing and the upcoming budget
Treasurer Scott Morrison spoke to the National Press Club yesterday to outline what the next budget by the Turnbull Government will look like. Unlike the previous attempts by the government to severely cut funding to many popular and widely used programs, the Treasurer is apparently now keeping the spending cuts to a minimum.
Negative gearing is one of the areas that the government will be closely inspecting at its next budget, with reports that they will be capping the amount of properties that can be negatively geared, or a cap to the amount of money the government pays on the properties.
Meanwhile tax breaks from negative gearing would reportedly favour richer, older people, instead of the younger demographic looking to enter the world of real estate.
The “Man on the Money”, Dr David Bond, joined host Celline Narinli to explain how that popular investment strategy works and what the government wants to do about it.
