Victoria warned of biggest hit from negative gearing overhaul

Victoria’s rental properties swung from a $702m collective profit to a $2.53bn loss in just two years as investor holding costs surged. Victoria faces what property leaders warn could be the nation’s biggest blow from the Albanese government’s move to restrict negative gearing to new builds. Latest Australian Taxation Office data reveals the state was Australia’s negative-gearing capital ahead of the budget, with Victorian rental properties collectively $2.53bn in the red. The state had swung from a $702m collective profit in 2021-22 to a $2.53bn loss just two years later as higher interest costs transformed the economics of holding investment property. RELATED: Melb singer songwriter lists $16m home The Block’s crazy Melb asylum gamble revealed Iconic Melb film house heads for $2.9m+ sale The $3.2bn reversal was the sharpest of any state, with Victoria recording the nation’s highest ratio of interest deductions for property investments to gross rental income. Seven of Australia’s 10 postcodes home to investors recording the highest average annual rental losses were in Victoria. Investors living in Williams Landing topped the nation at an average $10,294 loss, followed by Fraser Ri...