Negative gearing losses the lowest we've seen

Negative gearing declines

The ATO recorded a total of 2¼ million rental properties in Australia for the 2019 tax year, but the number of landlords reporting a net rental loss declined to 1.3 million.

The proportion claiming a net rental losses therefore declined to under 60 per cent for the first time.

Over 90 per cent of landlords owned only one or two properties (and nearly 80 per cent only owned one).

Comparatively very few landlords ever go on to build anything resembling a property portfolio - just over 20,000 Aussies owned six or more rentals. 

Of course, the ALP's former Shadow Treasurer Bowen bungled the costings related to new builds so the proposed budget 'savings' from scrapping negative gearing were never real anyway.

But as it has transpired net rental income had already declined to negative $3 billion by FY2019 (and the dollar amount will be much narrower today as mortgage rates have since plunged). 

The average net rental loss is now so low that many more landlords will be in a cashflow positive position after tax. 

Overwhelmingly negatively geared landlords reported taxable income of under $100,000, with most earning under $80,000, so the negative gearing benefits don't only accrue to the wealthy.

The age spread of claimants was very wide, with the larger net rental losses (and profits) naturally tending to be reported by those in the 50 to 65 age cohorts.

With far fewer interest-loans outstanding these days and most landlords using the rental income to pay down their mortgage debt, overall landlords are in far better shape than they were in between 2008 and 2012.