"To every action there is always opposed an equal reaction: or, the mutual actions of two bodies upon each other are always equal, and directed to contrary parts".
Regardless of being good or fair or necessary it would take a long time to remove it without enormous damage
The building industry is a large slice of our economy, it can be said that it is too large a proportion and this money and energy would be better spent in manufacturing or building the countries wealth but once you have gone down a certain road it is very difficult to reverse direction.
Investment homes which house an increasingly larger portion of our population relies on negative gearing for a profit. The government does not supply as much of the rental housing as it did previously because it relies on the private sector for an increasing number of renters.
To produce a good profit from a rental property you need Good rents. Low maintenance Capital gain Negative gearing
Rent charged in Australia is about half of what they should be for a good investment return.
Therefore if negative gearing is removed there are a number of things that can happen Less private rentals Higher rents Less new homes built, so a drop in jobs. A further drop in house prices as more properties are placed on the market with less buyers. More people living on the streets and relying on the charity operations for relief.
When the government moves the goal posts it can do enormous damage which is beyond the ability of the academics to understand
