Firstly the cgt discount introduced in about 2000 I think relaxed
Indexation which I don’t remember how it worked.
But basically before 2000 if you sold a house and made 1 profit you paid the govt let’s say 400k in tax, now if you sold and made 1 mill the govt gets 200k in tax. So the govt has lost the 200k which could have been used for public housing it set aside but it also made property a much more attractive target for investors.
As to Neg gearing it’s quite similar in a way, if the lose say 50k a year due to making what I think is a poor investment ie bad yields then that 50k is taken from your taxable incomes and if you are in a high tax bracket the govt misses 20k or so of tax from you every year.
Tax payers are basically covering your losses but what are you really providing?
I think they should scrap net gearing and cgt going forward but only allow both on new builds and maybe only allow neg gearing for 20years
House prices took off from 2000, long before the excessive immigration, it’s arguable the immigration was to help get more workers to do things like build houses
