New PICA analysis demonstrates property investors are generous contributors to government coffers

New analysis by the Property Investors Council of Australian (PICA) has detailed how much tax typical property investors pay to government under current negative gearing and Capital Gains Tax (CGT) rules.

PICA chairman Ben Kingsley said the council’s modelling showed an average Mum and Dad investor was adding hundreds of thousands of dollars to the public purse over the lifetime of a single investment property.

“The amount of federal taxes property investors pay is extraordinary and will surprise many – and that’s before state-based stamp duty and land tax costs are included, adding tens of thousands of dollars more to the bill,” Mr Kingsley said.

“Our numbers show while a typical Australian investor will benefit from negative gearing initially, they will be taxed around $167,000 in subsequent years over the full 30 years of modelling.

“It is clear that property investors do pay well above their fair share in taxes and our concern is that impost on investors is set to blow out even further if Labor’s policies see the light of day.”

Mr Kingsley said investors have been unfairly targeted throughout Labor’s and the Green’s election campaigns.

“With the majority of the nation’s 2.2 million property investors earning less than $80,000 a year, Labor’s claim about tax loopholes being for the big end of town are, frankly, insulting,” he said.

Mr Kingsley said political attacks via increased taxation on investors looking to self-fund their retirement would have far reaching economic ramifications for all Australians. It could force investors out of the market, reduce demand for property and weaken the market.

Mr Kingsley says this data proves Australian property investors contribute their fair share when it comes to government taxes.

Please see the attached media release and detailed analysis for further information. 

ANALYSIS – (PICA) – What Investors Pay Modelling Analysis

MEDIA RELEASE (PICA) Modelling shows investors pay hundreds of thousands in taxes



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