When he says "we let him offset the losses", you are aware that the he or they or it concerned is an entity which has always, under our law, been taxable on the net results of his or their or its assessable transactions.
I think it was in about 1985 that Paul Keating as treasurer amended the law so as to disallow interest cost from creating a loss situation so far as rental property was concerned, thus taking the negative out of negative hearing. It's a long time ago now and I hope my recollection of it is correct. But I am certain on this point. Before the amendments could come into effect they were repealed and it was as if the proposed changes never happened. I assume there was so much kickback from property owners and the real estate industry and perhaps a fear of wholesale rent increases, I don't know. But it would be a brave govt that tried it again.
