92% of neg gearing claims is on existing prop, page-11

"In general, one should be allowed to write off borrowing costs for an investment. Business is allowed this, and so should individuals be allowed."


That's because an "investment" is supposed to be a tool to produce wealth.

Yes, a business can write off borrowing costs because it encourages people to start businesses and (hopefully) produce wealth.

Unlike a business, a house doesn't produce wealth for the benefit of the economy. therefore, the tax payer shouldn't subsidise the borrowing costs.