The scale of our housing bubble in uniquely Australian as are the moronic policies that caused it.
More than 430,000 Australians could have owned their own home today – if not for seven prime ministers’ inaction
Landlords aren’t compensated in the same way in theUnited Kingdomor theUnited States.
In both those countries, landlords are allowed to lose money – no crime in that.
But they arenotallowed to offset those losses against their wages to pay less tax (although they are able to offset them against income from other investments).
In Canada, landlords can try it on. But the bar is higher: There, they need to be able to demonstrate an “intention to make a profit” – something that would be beyond many Australian negative gearers.
Back at the 2011 tax summit, Kochwent on: “It’s done purely for the attraction of letting the taxman pay half. I’m not saying get rid of it altogether, but there’s got to be a limit”.
No one returned to the topic. The summit moved on. And here we are 13 years later, still having the same argument.
https://www.thenewdaily.com.au/finance/2024/10/02/negative-gearing-inaction
