Pwinne, if this government is able to run with a carbon tax and a useless 42 billion dollar fibre to the home project, then yes they could consider canning Negative gearing IMO. Ng has and is taking property further and further out of reach for a new generation of labor voters. It is the fuel load that will burn the prices down at a breathtaking pace. Add an interest rate shock from inflation or spiralling bad debt increasing cost of bank funds, and even negative gearing won't save the overleveraged investor who has been to the get rich quick seminar with 10 properties all on borrowed cash.
The government wouldl make a heap from the stamp duty from mortgagee sales if they can it, and plenty more as a newer breed of speculators hit the cheap market after the fallout.
