Labor’s negative gearing reforms to cost some Sydney tenants an extra $24,700 a year

Rental vacancies are already very tight across Sydney. Picture: Simon Bullard Labor’s negative gearing reforms will cost tenants up to $24,700 a year in parts of Sydney – on top of recent, explosive rises in rents since the changes were announced with the May budget. That’s according to modelling by construction analysis group MCG Quantity Surveyors, in partnership with Suburbtrends, which revealed the cost of the tax changes will land squarely on tenants’ shoulders. Under the policy, property investors who buy an established home will lose the ability to write off rental losses against their income from July 2027. Those who buy brand-new homes will get to keep the tax write-offs. The research indicated the policy would create a massive tax trap, turning cheaper, established homes into a tax benefits desert and funnelling much of the investor market into brand-new builds. MORE: Fury as $675k earner gets govt aid The Albanese government announced the negative gearing reforms with the release of the May federal budget. Picture: Martin Ollman The forecast result was a significant reduction in cheaper rental options, with much of the scant fresh rental stock coming to market being bran...