Insane amount Anthony Albanese could be making from his new $4.3million clifftop pad - and the huge tax savings he can benefit from
Anthony Albanese could be set to score a whopping tax saving of nearly $90,000 if he rents out his new $4.
Anthony Albanese could be set to score a whopping tax saving of nearly $90,000 if he rents out his new $4.3million waterfront mansion at $1300 each week, economic analysts have found.
It was revealed on Tuesday that the Prime Minister is the new owner of a five-bedroom home at Copacabana, just south of Avoca on the NSW Central Coast.
Mr Albanese will share the $4.3million cliffside home with his fiancee Jodie Haydon, whose Coastie family have lived in the area for several generations.
The PM insisted he was not planning to move into the property any time soon, telling reporters that he would remain in his current job for a very long period of time.
This has raised the possibility that Mr Albanese may choose to rent the property out if he is re-elected next year and continues to stay in taxpayer-funded accommodation in Sydney and Canberra.
Such a scenario could see the Prime Minister charge an estimated $1,300 each week while being able to write off tens of thousands off his tax bill, according to economic modelling by tax advisory group MCG Quantity Surveyors.
MCG, which was not involved in Mr Albaneses house sale transaction, calculated that he could benefit from up to $87,000 a year in negative gearing concessions, according to News Corp.
This would, of course, prove incredibly controversial, given Mr Albanese has refused to rule out changes to tax concessions for investment properties.
Mr Albanese will share the fe-bedroomf, $4.3million cliffside home with his fiancee Jodie Haydon , whose Coastie family have lived in the area for several generations (the couple are pictured together)
Negative gearing is where investor landlords can claim a rental loss against their taxable income.
Even if they dont make a loss, they can claim expenses from interest payments to council rates and property maintenance so they can reduce their total taxable income.
It is estimated to cost the annual Federal Budget about $18.6billion.
In Mr Albaneses case, much would depend on how much money he has borrowed for the purchase of his beachfront mansion and whether he bought the property in his own name or via a trust.
The MCG modelling was based around the estimated $1,300 per week rent the property could attract and also took into account Mr Albaneses Prime Ministerial salary of roughly $607,500.
It also factored in other expenses such as the $5,300 in annual council rates, in addition to projected property management fees and upkeep.
These expenses were then crunched with the typical interest rates being charged on home loans by big lenders.
MCG analysists predicted that if Mr Albanese used a 20 per cent deposit on the property combined with an initial interest-only period on the loan, he would be able to receive $87,000 in tax savings.
If, however, he had paid a larger deposit of 50 per cent his tax concessions would be around $46,500.
Mr Albaneses decision to buy a multi-million dollar mansion during a housing and cost-of-living crisis was labelled tone deaf by his critics.
He acknowledged that he had a good income as Prime Minister but insisted that he had not always been so fortunate.
I also know what its like to struggle, he told reporters on Tuesday.
The Prime Minister is the proud new owner of a five-bedroom home in Copacabana, on NSW s Central Coast
The home sits right on top of the cliff on a 790sqm block of land and is just a short stroll away from the picture perfect beach
My mum lived in the one public housing (flat) that she was born in for all of her 65 years.
I know what its like which is why I want to help all Australians into a home, whether it be public homes or private rentals, or home ownership.
But his attempts to portray himself as a man of the people cut little ice with Sky News host Peta Credlin, who accused Mr Albanese of being ‘tone deaf’.
‘Albo has now lived out of that housing commission house (he often speaks of) longer than he ever lived in it,’ she wrote on social media.
‘And frankly, people struggling now are sick of the way he uses this story to try and show empathy when it’s what he does in the biggest job in the country that matters.’
However, the Prime Minister has been defended by fellow Labor ministers such as Clare ONeill, who insisted he was about to embark on a new life with his incredible fiancée.
This man leads an Australian government that is more bold and ambitious on addressing the housing needs in Australia than we have in many decades, she told Sevens Sunrise on Wednesday.
I understand the interest but we are trying to address the housing issue that affects millions across the country.
But behind the scenes, MPs were reportedly giving a very different verdict - with one Labor MP telling the Sydney Morning Herald they were gobsmacked and another panning the timing of the purchase as f*****g terrible.
The clifftop home is on a 790sqm block of land and a short walk from the idyllic beach, with ocean views from nearly every room in the house.
Mr Albaneses new five bedroom house boasts Pacific Ocean views from nearly every room
Having grown up in public housing, Mr Albanese now enjoys an impressive property portfolio.
His other assets in Sydneys inner-west including a three-bedroom townhouse in Dulwich Hill and a Federation home in Marrickville.
That doesnt include his free housing at The Lodge in Canberra and Kirribilli House in Sydney.
Opposition Leader Peter Dutton was in no position to call out the PM as out of touch given he himself had a property portfolio that was valued at $4.5million by the Daily Mail in 2022.
Theyre obviously planning for the next stage of life, post politics, and I wish them well in that, Mr Dutton said.
Its the home owners in Australia that Im worried about - people who cant afford their mortgages.
