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While I don't disagree with that in principle, why should the government prop up investors who make a loss from investment property using that exact same logic? Surely if you can't afford to keep an investment property, you can't expect the government to reduce the costs associated with it...

In NSW at least the FHOG is only there for new builds. It does not apply for established housing.

If NG is gotten rid of the only logical way to do it would put an end date. All existing purchases are protected. Only new builds purchased until 2015 are to have NG going forward. Something like that. This means that rental stock is not diminished (although we are getting 2 stories on that...