Wednesday, April 27, 2016

Top 20 Occupations who use Negative Gearing

If you are working in Australia and you don't even know what negative gearing is, it is likely that your occupation is not one of the top 20 professions taking advantage of the strangely named investment property tax benefit. Negative gearing is the use of an investment property's interest repayments as a tax deduction to reduce the tax payable.

There aren't too many anesthetists and surgeons in Australia but 28% of them use negative gearing. School principals are not too far behind, perhaps because these occupations have the time to look into tax minimisation? The Liberal government decided recently that it is a worthwhile election issue to support the continued practice of negative gearing. The Grattan Institute released a report on Monday which found that the top 10 per cent of earners collect nearly 50 per cent of negative gearing tax deductions and three-quarters of all concessionally taxed capital gains. Only 10% of taxpayers use negative gearing so it is a tax benefit that 90% of the taxpayers fund for the 10% that do. Ouch.. no wonder a recent poll found 73% support Labor's position on removing negative gearing.

OccupationTotal number of taxpayersNumber who claimed rental lossesPer cent who claimed rental lossesAverage rental loss, per claimant ($)Total rental losses claimed ($)
School Principals11,4223,13527.45%10,25832,160,384
Internal Medicine Specialists7,6391,95625.61%20,90440,888,249
Senior Non-commissioned Defence Force Members7,3901,79724.32%8,45315,191,307
Air Transport Professionals14,6503,53924.16%14,61851,733,872
Commissioned Officers (Management)10,6752,52023.61%10,37926,155,407
Finance Managers31,8717,42823.31%12,70494,370,557
Engineering Managers26,6086,11022.96%12,94679,101,081
Mining Engineers9,4712,12722.46%14,24530,299,595
Judicial and Other Legal Professionals2,52856022.15%15,3078,572,296
Dental Practitioners8,5331,86421.84%15,29528,510,546
Other Building and Engineering Technicians22,7994,94521.69%11,49856,861,581
Policy and Planning Managers35,4377,58121.39%10,86382,357,108
Other Hospitality, Retail and Service Managers32,0516,77521.14%10,40270,476,971
Human Resource Managers23,6044,81220.39%9,95047,880,217
Generalist Medical Practitioners27,7135,56520.08%15,28485,055,480
Occupational and Environmental Health Professionals12,0972,42020.00%9,87023,887,482
Corporate Services Managers9,6691,93019.96%11,01421,257,814
ICT Managers60,00911,91719.86%11,701139,442,997
Electrical Engineers22,9444,54719.82%11,80853,693,586

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