Negative gearing benefits middle Australia, says Joe Hockey

By Mozo ·

The Property Council of Australia welcomed comments from Treasurer Joe Hockey reported in the Weekend Australian that there is “no merit” in changing negative gearing for residential property.

According to the government’s analysis, negative gearing is used a lot by people with medium incomes. For instance, in the year 2012-13, approximately 36,000 nurses and midwives, 10,415 emergency service workers, 53,855 teachers, 10,255 social workers and 90,000 clerical staff all earning around or less than $80,000 per annum declared a net rental loss.

“Negative gearing is a well-established, long-standing part of Australia’s tax system and the people who use it most are everyday Australians looking to get ahead,” said Ken Morrison, Chief Executive of the Property Council.

“This isn’t some tax lurk for the wealthy, it is a legitimate and effective part of our taxation system that is used most by people earning under $80,000 per annum who become property investors through their own hard work.

“Any changes to negative gearing would hit middle Australia hardest and would take away one of the best ways most people have to save for their retirement,” he continued.

The Reserve Bank recently revealed that investors spent $6bn on the property market in June, one of the largest monthly figures on record, reported the The Australian.

“Negative gearing is a way for people on medium incomes to get into the property market,” Mr Hockey told The Weekend Australian. “Many hard-working Australians have invested money in real estate … to give themselves some financial security.”

As the government prepares to outline tax reform options­ in a white paper before the next election, Mr Hockey’s statement made it clear that negative gearing would not be one of the targets.

For potential home buyers that are trying to navigate Australia’s property market, Mozo’s experts have collected some handy information answering common questions on home loans like how much you can borrow and how much deposit a bank would need you to have saved before you make an investment.   

Home loan comparisons on Mozo - page last updated October 17, 2020

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.

I want to borrow


  • 2.54% p.a. variable

    2.81% p.a.

  • mozo-experts-choice-2020

    2.48% p.a. variable

    2.50% p.a.

  • mozo-experts-choice-2020

    2.09% p.a.
    fixed 2 years

    2.98% p.a.

  • mozo-experts-choice-2020

    2.34% p.a. variable

    2.34% p.a.

  • Hot DealUp to $1,500 cash back on refinances (T&Cs apply)


    2.29% p.a. variable

    2.32% p.a.

Picture of Steve Jovcevski

Talk to a Mozo home loans expert

Buying your first home, refinancing your existing home or thinking of investing? Speak to Steve, our home loans expert today!

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

**Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loans Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.