house interest should be tax deductible, page-18

'They would pay more if not a resident or they would have it in the name of a resident or company I presume'

untrue,

they get a 50% discount on cgt,

but i suspect many are not even paying that!

http://www.ato.gov.au/General/Capital-gains-tax/In-detail/Calculating-a-capital-gain-or-loss/CGT-discount-for-foreign-resident-individuals/

imo, the ato are not in a position to police such!