Alfred Hitchcock, page-30

Negative gearing can occur when someone buys a rental house which is positively geared but then when interest rates go up and government charges like land taxes, council rates and levies go up put a positive into a negative geared situation.

Now if Bill Shorten wants to.get rid of negative gearing is he also saying that none of the interest can be offset against any income people are earning from buying a business in which case may banks will not lend to business buyers unless they can show the business will be able to very easily cover the interest and capital repayments. Bill Shorten is obviously not too economically cleaver or .understand that his policy will create a credit squeeze not only for potential buyers of other peoples businesses but also for vendors of businesses. He might not realise banks might require more security before lending money to potential new business starters because of the negative cashflow possibilities if the new business were to take longer to establish than originally budgeted for. Landlords might demand higher bonds on shop rentals to cover themselves for quicker closing down situations because banks would move more quickly to freeze overdrafts and Lines of Credit when negative gearing goes under his ideal world where everyone with an.enterprising mind should pay more tax and have more obstacles put in their path. But that is the ALP under Bill Shorten. Short of ideas of how to grow new business operators during a stagnant economic period will only result in less tax collections.

I help uns and still look.in from time to time but I'm unimpressed by AS overall and even less impressed he could not remember to look after his own holdings which he lost control over last year. Very poor financial management of his own assets and ours it seems too.