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Budget surplus trumps concerns about negative gearing changes

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Australian Broker | 01 Apr 2016, 06:32 AM Agree 0
Altering the tax breaks offered to real estate investors should be considered by policy makers if they are serious about returning Australia’s Federal Budget to surplus in the near future
  • SEQ Broker | 01 Apr 2016, 10:09 AM Agree 0
    Im With the PM on this one.
    Neg gearing is not an special case. it is a function of applying a loss in the pursuit of income at time of calculating your profit / loss for tax purposes. To expand this to other industries other than property investment, it is like a tradesman not being able to claim the lease of his work vehicle, or any person claiming any work related item that is financed. Why pick on property - because it is one of the few places where mum and dad investors can pull themselves out of the poverty cycle and make something for their family. Im surprised the softy Labor government, who lets face it cant count anyway, isnt supporting working mums and dads.
  • Jeff | 01 Apr 2016, 05:19 PM Agree 0
    I love the one dimensional calculations that so called experts use these days.
    Simply halve negative gearing & do the numbers on extra revenue that causes; but don't factor in the other issues this would cause. eg landlords will dramatically hike rentals to recoup what they are losing on negative gearing. The renters then begin to struggle, so they reduce their spending, which then affects retail sales, which then reduces employment in the retail sector, which then reduces the amount of tax collected & potentially increases welfare benefits...etc etc..
    Maybe they should hire the "Lion King" & learn that we are all connected in the circle of life... :)
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