Australia to restrict property tax evaders




Australia may restrict a property tax scheme to only its citizens after it was revealed on Monday that foreign investors dodged close to 60 million U.S. dollars in tax in 2013, according to an article in the Shanghai Daily.

According to the article, Australian Tax Office data showed almost half of the country’s 52,670 foreign investors that declared rental income in 2012-13, the latest figures available, claimed a loss, mostly through negative gearing, News Corp reported on Monday.

Negative gearing allows landlords to offset the cost of their investment property, such as maintenance, agent fees and interest on mortgages, against the income received from rent.

It has been blamed for handing the advantage to higher-income earners and pricing lower-income earners out of the property markets in Sydney and Melbourne, where house prices are sky- rocketing.

The government, fearing voter backlash from the 1.27 million Australians using the system, has been…

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