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Focus on housing affordability, not negative gearing: NSW planning minister

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Australian Broker | 28 Nov 2016, 06:47 AM Agree 0
NSW planning minister Rob Stokes has spoken out against negative gearing
  • Tom | 28 Nov 2016, 10:37 AM Agree 0
    Surely this has to be mischievous reporting and a distortion of the quote made by Rob Stokes.

    If true, how can our politicians be so poorly advised that they do not understand the requirements of Negative Gearing?

    Mr Stokes is quoted as saying "Why should you get a tax deduction on the ownership of a multi-million-dollar holiday home that does nothing to improve supply where it's needed?". However the error is that a Holiday Home does not qualify for a tax deduction UNLESS it is Rented out and earns an income.

    You cannot claim Negative Gearing against a property that does not generate income. If our politicians do not understand the basics of Negative Gearing, perhaps they need to get an understanding from somewhere other than the Anti-Negative Gearing media.

    Perhaps they should seek the guidance of a Practicing Tax Accountant and not an academic one. Or perhaps a briefing form the Tax Commissioner may not be out of place either.
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