A) when you sell the house you have to repay a portion of the negative gearing claimed
B) when you sell the house you are up for capital gains, all money for the government.
So at the end of the day the more capital gain the more tax collected.
C) if the ALP's plan comes in, then I think there will be a softening in the housing market, and I suspect the banks may review present house valuations compared to the mortgage on that house. And maybe, but I'm not sure about this, there may be a requirement for owners to take out LMI to reduce the bank's exposure if the LVR is above a certain percentage, often 80%
