Win for Negative Gearing

I would have preferred if they axed negative gearing. This would have increased rent prices and/or decreased house prices. As my properties are positively geared, this would have been awesome.
 
Agreed Kent. I think negative gearing will be here for some time to come. The government understands that removing the tax benefits would merely create pressure on the other side of the equation so it's better just to leave things as they are.
 
I would have preferred if they axed negative gearing. This would have increased rent prices and/or decreased house prices. As my properties are positively geared, this would have been awesome.

I agree - the true cost of housing should be refelcted in rents. But then I am torn against the fact that why should real estate be singled out for special treatment? but then again, miners are, so what's the difference? And a special tax on banks would be nice too.
 
Would be great for me too, removing it that is.

Rents would rise, woo hoo.

Not gonna happen though.

Too many mums and dads and their votes to be concerned about, plus the govt get back, waaaaay more in tax than they dish out in deductions for property. IIRC.
 
I've said once if I've said it 100 times before - the govt will not abolish negative gearing because they generate too much revenue from it. Would you stop spending $1 if you made $4.50 in return? Its so much a no brainer that even a politician can work it out! ;)
 
Agreed Kent. I think negative gearing will be here for some time to come. The government understands that removing the tax benefits would merely create pressure on the other side of the equation so it's better just to leave things as they are.

I wonder if the government do understand anything as complex as negative gearing. As far as labor are concerned it is a tax subsidy for filthy rich property owning enemies of the people. I am surprised Gillard and co didn't abolished it sooner as NG must be an anathema to fabians like her, regardless of what extra costs the government would incur. When you look at what labor have done so far, cost seems to be irrelevant.
 
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