Negative gearing should come to its inevitable end. It is an ineffective, outdated law that really just skews the odds in the favor of property investors over home owners whilst taking billions dollars of tax from the government each year.
It really is a crazy tax law if you think about it. I mean what sort of society champions a tax law that encourages its citizens to buy into losing investments in the hope of covering these losses by never ending capital gains and having these losses worn directly by the rest of society in the form of losses to the government in tax revenue (hence increasing the need for higher taxes in other areas).
What harm would it do to ditch negative gearing on any forward investments and keep it for any properties purchased prior to the change. It is a dated law that's intention was to encourage investment in new property but in reality has just encouraged investors to speculate on the price of pre-existing homes at the expense of owner occupiers.
Do away with it I say and bring Australia in line with the rest of the the advanced western world. It is one of the key factors that is contributing to the current housing bubble, never achieved its original intention and has no proven benefit in helping Australia's economy looking forward.
