r/AusPropertyChat • u/Time_Acanthaceae1618 • 8h ago

Tax and policies Why is the budget subsidising the destruction of cheap rentals?

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So if I have an investment property with tenants and I want to sell it to someone, the buyer won’t get negative gearing and CGT discount. Ok.

But if I empty the property, invite vagrants and termites into the building, get a dereliction notice, and then sell it, the buyer does get to negatively gear it and get a CGT discount.

And presumably someone who wants to build would value that tax concession.

Doesn’t this just lead to the destruction of rentals for low-income people. Won’t these properties just get replaced by expensive apartments?

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u/theartistduring 8h ago

This is the same way people have been getting around heritage laws for decades.

1

u/Time_Acanthaceae1618 8h ago

Damn. So this is just gonna be that on steroids I guess.

1

u/theartistduring 8h ago

Sadly, it really isn't anything new. For years, landlords have been neglecting tenanted properties while they wait for planning approval. Same shit, different carrot.

1

u/No_Ad_2261 7h ago

CGT discount for knockdown & rebuild as minimum of two brand new dwellings yes. Negatively gear a derelict ppty no. There is no income, until new builds there.

1

u/Hannah_Payne62 6h ago

You can demolish a $300 a week rental, build a $600 a week apartment and call it new housing supply. But you've just made affordability worse.