Government fixes widow's tax loophole in negative gearing changes

The Australian government has announced a fix to address an unintended consequence of budget tax changes to negative gearing, where Australians could lose negative gearing benefits on inherited properties following a partner's death, divorce or separation. Senator David Pocock identified the loophole, prompting Treasurer to confirm that negative gearing will now follow property inheritance once changes pass Parliament. The opposition has confirmed it will support the fix while maintaining plans to repeal the broader negative gearing changes if elected, with concerns raised about the rushed implementation of budget tax reforms and their impact on small businesses and entrepreneurs.See omnystudio.com/listener for privacy information.