About 300,000 Victorians who use negative gearing could claim land tax hikes as deductions

Premier says levy is tax deductible' as ATO says 304,942 Victorians used negative gearing in 2019/20

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Daniel Andrews has rejected claims a new levy on property investors will lead to rent increases, urging those who use negative gearing to instead claim the expense through the federal tax system.

Tuesday's Victorian budget detailed several measures to repay $31.5bn worth of funds borrowed by the state government during the pandemic, including additional land tax charges forecast to affect about 860,000 property investors.

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Additional reporting by Paul Karp