Freewill: "Probably only allowing income losses to be offset against future Property income rather than salaries is the way to go.
That would be fine if the earnings from the property are considered separately taxable and not added to your other earnings.
yotta: "Talking about residential properties. Not rental properties running business."
I am talking about that too - running a rental property is running a business. It is the business of renting a property.
yotta: "My point is there. Many property investors use NG to minimise tax "even though they can buy a rental property without NG". That's a flaw of the current tax law. Not a fair tax law. ATO and renters subsidise the property investors with NG. If interest is excluded from tax deduction, no NG mostly is possible."
Yes many investments are used to minimise tax - but you only do that if you expect to make money in the future otherwise the investor is an idiot. You can only deduct losses/expenses on any investment if there is an expectation that you will pay more tax in the future.
