By Shane Oliver, Head of Investment Strategy & Chief Economist from Oliver’s Insights, AMP Capital, Edition 21 2015

Key Points

  • This note focuses on the debate around the four major “tax concessions” in Australia: negative gearing, the capital gains tax discount, dividend imputation and superannuation.
  • Removing negative gearing for property investment and dividend imputation will only add to distortions in the tax system. Removing negative gearing won’t remove  the real driver of poor housing affordability.
  • These “tax concessions” also need to be assessed in the context of the income tax system, which is already highly  progressive with just 17% of individual tax payers accounting for around 63% of income tax revenue.

Read the full article here.