negative gearing rorting the guts out of oz, page-16

"Nice rant Longnow - as long as incentives are there it is a business with business deductions." It has nothing to do with personal exertion income, therefore the deductions are garbage - should simply form part of the tax base for CGT (which is taxed at a concessional rate).

"Many who ng ed are now paying tax." At half of their tax rate, after being given tax deductions off their unrelated income for years.

"Allows owners to repair / upgrade and provide housing at a good standard." They make something like 3% after costs. The laws protect tenants, not NG. Remove NG, property speculation at these rates is uneconomic, and prices plummet, as well they should.

"Whether old or new it still is accommodation for the poorer to be able to rent. If in the hands of the govt it would be more expensive and a disaster zone." Again, landlords do not lower their rents in lieu of NG being in place. They charge as much as they can. The only effect is they accept losses, because they'll be subsidised (and they think this magic pudding of growth will continue forever).

"Be careful you do not get caught up in the hype. Negative Gearing is one side of the equation with real estate. Countless landlords pay tax. NG goes rents WILL rise to offset the deductions forfeited - guaranteed.Removal been tried, failes and will happen again.You guys are being softened up to pay more rent. Why ? Because the landlord can."

The landlord CAN'T. They are price takers in the rental market. Removal failed because of the spivs of the property industry demanding it be reinstated. I have no doubt the landlords will try to raise rents, and find no tenants. In the end, a lot will forfeit their proerties. It'll cause pain. But it'll be a cleansing fire, removing the artificial pain caused to every owner occupier currently.

The issue of property specualtion in this country would make for a great study on cognitive dissonance, where people who are otherwise economically rational make every excuse under the sun why the country's biggest market should be allowed to be interfered with for one group's gain over everybody else.