Anthony Albanese’s Sydney investment property heads to auction and is set to make an estimated $500,000
The PM could make around half a million dollars after selling his investment property this Saturday and benefiting from the contentious capital gains tax discount. See the video.
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Exclusive: Prime Minister Anthony Albanese will likely bank around half a million dollars after selling his investment property this Saturday and benefiting from the contentious capital gains tax discount.
The 50 per cent discount, which will likely save the PM $150,000 in tax, comes in addition to the near decade Mr Albanesecould have negatively geared the three-bedroom townhouse in Dulwich Hill in Sydney’s inner west.
Property experts said Mr Albanese, who bought the property in 2015, could have claimed between $18,143 and $24,782 per annum,depending on his losses, which would total between $163,287 and $223,038 over the past nine years.
See a tour of the house in the video above
The planned weekend auction comes weeks after rampant speculation over whether the government was considering tweaking negative gearing and capital gains tax (CGT) concessions in a possible bid to boost supply amid worsening housing affordability.
Both the PM and Treasurer Jim Chalmers have said changing the CGT discount and negative gearing was not part of their policy agenda.
The PM has hopes his Dulwich Hill townhouse will fetch $1.9 million when it goes under the hammer, representing a more than 60 per cent price increase since he bought the property for $1.175 million. The median price for a house in the inner west suburb has increased 9.1 per cent over the past 12-months to $2.3m, according to PropTrack.
Prominent property investor and real estate expert James Fitzgerald said a $1.9 million sale would see Mr Albanese make a capital gain of about $618,000 (if he borrowed the whole amount) and pay a capital-gains tax of about $145,000 with the discounted rate.
Working on an assumption the PM purchased the property with a 10 or 20 per cent deposit, MCG Quantity Surveyors director Mike Mortlock said the CGT exemption would slash the tax Mr Albanese paid on the sale price from $329,000 to $164,500.
“Given it was an investment property the whole time he’s [Mr Albanese] owned it, he would then be eligible for a 50 per cent capital gains tax exemption,” he said.
Mr Mortlock has estimated Mr Albanese could have negatively geared the property for between $18,143 and $24,782 a year.
Mr Fitzgerald said, the PM was “probably getting 45 cents on the dollar back, it’s [property] probably getting about $18,000 back, so costing him $22,000 even with the negative gearing benefit.”
“Which might be why he’s selling because it’s costing him a lot of money to hold it.”
Mr Albanese’s salary increased to $564,356 – pushing him into the top tax bracket of 45 cents in the dollar – when he became prime minister in May 2022.
At an open house for the Prime Minister’s investment property on Thursday, ambient music played while a bouquet of orchids sat on a glass coffee table in front of a cream lounge. This writer was the only person present.
Mr Albanese’s former tenant Jim Flanagan in May publicly appealed to the PM to reconsider evicting him to sell the townhouse after renting from the Labor leader for four-years.
The PM in return defended his landlordship and said he had dropped his tenant’s rent from $880 to $680 during Covid and kept charging the small business owner the discounted rate.
A government spokesperson said Mr Albanese’s personal arrangements were on the public record as required.
“The Government’s housing and tax policies are currently before the parliament,” he said.
It is not suggested Mr Albanese has done anything wrong by claiming investment property deductions and the reported figures are estimates based on assumptions.
Mr Albanese sold a unit in Canberra three months after being elected PM and in 2021 sold the Marrickville home he’d purchased with his former wife Carmel Tebbutt for $2.35m.
ALBO’S INVESTMENT: BY THE NUMBERS
Purchase price: $1.175m in 2015
Selling price: hoping for $1.9m on Saturday
Rental income: between $680 and $880 a week
Annual negative gearing benefit: between $18,143 and $24,782
Estimated CGT discount: between $145,000 and $164,500
Source: James Fitzgerald, Mike Mortlock
Originally published as Anthony Albanese’s Sydney investment property heads to auction and is set to make an estimated $500,000
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