HI guys a friend of mine had told me that he had read in the paper that the govt is looking at abolishing negative gearing???? Any one else heard of this. I have been unsuccesful in finding out more about this. Whether it turns out he miss read something i would be interested if anyone has thought of what thier strategies would be if it did ever occur.
k
Nope, they were looking at it, but it’s right off the burner now!
Link Here
God do we ever live in the lucky country!? Here we are with a government who hand out more in tax deductions on investment properties every year than they take in tax on rental income. What a great idea!Cheers, F.[cowboy2]
Foundation, is every post of yours going to be sarcastic from now on?
Did someone hurt your feelings or ego?
The Mortgage Adviser
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Essential LinksHey dude, I’m just staying poz’ man… You look like you could use some candy… ([chill])…
Howz that? Better dude?+1 Karma, F.[cowboy2]
Originally posted by foundation:Nope, they were looking at it, but it’s right off the burner now!
Link Here
God do we ever live in the lucky country!? Here we are with a government who hand out more in tax deductions on investment properties every year than they take in tax on rental income!
Amazing.
This is the best. What a great idea!Cheers, F.[cowboy2]
only because they collect even more back in capital gains and a myriad of other taxes. Even the government believes negative gearing is a wealth creation stratgey!
http://www.megainvestments.com.auJohn Carroll
The last time an Australian government abolished negative gearing was in the mid 1980s by then then worlds greatest treasurer. The rental market nearly fall apart. Very quickly it was brought back. The government decided that they were not in the business of governmentt housing. However the same financial wizard then introduced capital gains tax. Are we not luckly to have these people looking after our interests.
Nigel Kibel
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Originally posted by nkibel:The last time an Australian government abolished negative gearing was in the mid 1980s by then then worlds greatest treasurer. The rental market nearly fall apart.
I’ve heard this a number of times, yet the charts and graphs I have indicate this may be a myth. There was no spike in the cost of renting etc. Do you have a link or something to support this claim?
Cheers, F-Jeckyll[cowboy2]
Oh wait, here we go:
The Validity of Arguments Against Negative Gearing
14. Advocates of negative gearing claim that when it was abolished temporarily between 1985 – 1987 there was a substantial increase in rents.15. There is evidence that the increase of rents was limited to only two of the capital cities and furthermore was not caused by the abolition of negative gearing[3]. It has been reported that Saul Eslask, chief economist of the ANZ Bank, has said that does not the abolition of negative gearing during 1985 – 1987 did not lead to higher rents[4].
[3]Badcock and Browett 1993, The responsiveness of the private rental sector in Australia to changes in Commonwealth taxation policy. in Housing Studies Vol 6 No3, and David Hayward and Terry Burke,
[4]‘Justifying the Unjustifiable’ (1988) 7(
Australian Society 16From This Link
See, not that hard is it? Finding some evidence to back up a claim can really add weight to the validity of your posts. Unless, of course, it is a n unsubstatiated quote from API / REI* / PI etc.
Cheersm F[cowboy2]Thanks F
For the link you supplied to one of the 340 submissions http://www.pc.gov.au/inquiry/housing/subs/
It made for interesting reading. Equally interesting is the final document that the submission may have made a contribution to:
http://www.pc.gov.au/inquiry/housing/finalreport/housing.pdfCheers
JThanks, the. [thumbsupanim]
I can’t believe I’d never read that report (only the media commentaries).
Gold.
F.[cowboy2]you must be joking F – even you must accept that the huge subsidisation of property by the taxation system is contributing to lower rents
http://www.megainvestments.com.auJohn Carroll
I think a lot of people miss the point here. Suppose engative gearing is cancelled. It is HIGHLY unikely to apply to investments that already exist (they will be ‘grandfathered’ just like pre-CGT assets and just like they were when the Govt briefly eliminated NG in the past).
They key is what happens NEXT. NG lowers yields by supporting prices and its cancellation will lower demand for IPs and therefore for housing from those why invest to get tax returns (duh!) and those who need the concessions to invest. That may lower prices generally to a point where plain CF+ property is essier to find and creative CF+ deals are more profitable.
I can live with that.
Australian Society 16
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