Core Logic have looked at the ATO registration of property investors and written a great report. A must for every advisor and every voter in the forthcoming election.
They show that property is heavily taxed and investors are contributing much more in tax then they cost in deductions for negative gearing. They conclude that “Anecdotally, with high construction costs, the $3.719B worth of net rental losses claimed by negative gearing investors, is potentially much less than what it would cost the Government to provide subsidised rental accommodation or more social housing.”
http://www.corelogic.com.au/news/a-profile-of-the-australian-investor-who-where-and-what