Article in the Age

[Marco]

I suppose the debate to abolish negative gearing comes around like property cycles. One can only assume that Mr Costello is a man of his word :D


"Mr Costello yesterday dismissed reports that the Productivity Commission had recently formed the view that negative gearing and capital gains tax concessions for investment properties were too generous.

"Forget what the Productivity Commission is alleged or not alleged to have said; we are the Government which cut capital gains tax for individuals in half, and that will not change," Mr Costello told Sydney radio.

"If you borrow to go into the business of owning and renting properties, the cost of your borrowing is deductible against your income. Now that... will not be changing either."

http://www.theage.com.au/articles/2004/04/13/1081838721014.html

[RPI]

If the costs are examined for giving these 'concessions' to investors plus rent assistance versus governments having to provide rental accomodation themselves private rental accomodation has got to be cheaper for them.

Darryl

[Lplate]

Negative gearing is a splendid diversion for both sides of politics.

Negative gearing and depreciation schedules account for legitimate costs and are not rorts perpetrated by wealthy landlords. How should I account for the cost of interest? What about replacing the carpet?

Both Latham and Costello know this and both are politicians who deal in diversions. Howard is a master of diverting attention away from real problems. Smokescreens.

Housing prices track behind inflation for years and then there is a catch up. I would venture that some past government 'initiatives' on both sides of politics created higher pent up demand.

Who believes politicians?? They have no credibility whatsoever. 'Core' and 'Non Core' promises indeed!:eek: :eek:

LPlate

[ger]

The way I see it
Property Investing is like running a bussiness
look at all the Tax deductions bussiness are
alowed to use
So why scrap the the deductions for Property Investors

( My two bobs worth )

[Lplate]

The way I see it
Property Investing is like running a bussiness
look at all the Tax deductions bussiness are
alowed to use
So why scrap the the deductions for Property Investors

( My two bobs worth )

ger

G'day
True.
The other thing I'd like to add is that the property owner should be able to make a sufficient yield to operate profitably. Same as other businesses.

It is not profit for me when the value of property is affected by inflation catch-up. In fact it raises costs through direct and indirect government taxes and charges. I should not have to sell my business to make a profit.

Property owners are small businesses and we should lobby as such.

LPlate