Instead of giving the tax breaks to investors why not limit the investor tax breaks & give the breaks to owner occupied families instead.
Let owner occupied people claim the interest on their loans as an offset against their income but without the other depreciation & other offsets that investors are allowed.
Investors could still claim their other expenses but only be allowed to offset them against income from their other realestate earnings & not their PAYG income, similar to farmers.
Don't let investors claim the interest on their loans as an expense to off set their expenses against their PAYG incomes it is tax evasion.
If their return on the investment after normal deduction is lower than the income then it is a bad investment & they should wear it the same as everyone else.
If the argument is that enough new homes wont be built if negative gearing was scrapped is just rubbish.
Giving owner occupied families the same tax break & take them away from investors would have a negative impact on the govt coffers as it costs the govt now with the current negative gearing breaks.
Everyone would want to own their home & that would drive the new house market & maybe help lower the foreign investors buying.
To say that investors are the driving force behind the house market would then be reversed by owner occupied families.
Tax evasion is a criminal offence but that is clearly what negative gearing is designed to do.
