I wonder how many properties on short term rental platforms are negatively geared, vs those that are positively geared?
According to the SMH this morning, the ATO is about to crack down on claims by investors who are deliberately under-pricing their holiday lets for friends and family. Also, the term “negative gearing” is misleading. I believe all that’s required is that you claim the expenses of your investment rentals against your income. And you don’t have to be in the red to get significant tax breaks. All you do is reduce the income from the holiday lets by the amount of expenses and then you are taxed less.
That said, it seems a bigger issue is the under or non-declaration of holiday let income. Maybe just hunting them down and taxing them would be enough. The new register of holiday lets in NSW could be a happy hunting ground for the taxperson.