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Wednesday, May 22, 2024

Government to allow Australians to negatively gear tank of petrol (The Shovel)

The Federal Government says it will pass legislation that will allow Australians to take out a tax deductible investment mortgage on a tank of petrol, and then rent out the tank to younger Australians who can’t afford to buy one outright.

Treasurer Josh Frydenberg, who will announce the initiative as part of the upcoming Federal Budget, said having an investment tank of petrol was part of the Australian experience. “For a lot of regular Aussies, buying an investment tank that increases in value over time is a great way to fund retirement. You might take a loan on a $500 tank now, and then watch as that increases to $50,000 over the coming years”.

Under the plan, renters would pay a fee of $300 or $400 for each short trip they take, rather than having to buy a full tank, which is unattainable for many people.  

Sydney man Jeremy Nolan said he planned to build up a portfolio of tanks of petrol as part of his financial strategy. “I’ve got my eye on a 50 litre tank of BP 91 to get my foot in the market. But over time I’d like to add a Shell Premium 95 or even a Premium 98 if my bank will lend me the funds”.

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