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    Property investment does well on tax front


Property investors have made a fortune on the tax front according to the lastest figures from the Australian Taxation Office.

Changes to capital gains tax in 1999 led to the boom, according to a report on the figures published today (Apr 18).

In 1999, capital gains revenue was $5.3 billion. In 2002-03 it had fallen to just $3.3 billion.

Landlords have been great beneficiaries of negative gearing. In 1999-2000 they declared profits of $1.74 billion. In 2002-03 they declared losses of $1.4 billion.

Property owners declared $31 billion in capital gains, but paid just 11 per cent in tax. On the other hand, salary earners paid 23 per cent of income in tax.

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