Sacred cow no more: what proposed changes to negative gearing really mean

By Danika Wright, University of Sydney

Negative gearing is set for its biggest change in decades. Once considered the sacred cow of federal government policies, both major parties are proposing changes ahead of this year’s federal election.

The Labor party has already unveiled its policy, which involves only allowing negative gearing on new houses and cutting the generous 50% capital gains tax concession to 25%.

The Government has not confirmed its stance and has attacked Labor policy, but has crucially left its options open.