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Negative (?) Gearing


I have never thought of negative gearing as a very bright financial manoeuvre, except back in the 70’s when we didn’t have capital gains tax.

If Bill Shorten continues to go out on that very fragile limb of “banning” negative gearing (i.e.cancelling the tax dodging benefits) and achieves the predicted crash in the Australian property market, perhaps he should pause and phone the Commissioner of Taxation who could give him a simple solution – one which is already contained in the Tax Act and which has been there for a number of years now. (Want to know what it is? Contact me and I’ll explain it in detail!)

Surely no sensible investor would spend a dollar to save 50 cents in tax unless that 50 cents spent now would return 75 cents in the future.

What is the intention of those investors who are allegedly supporting Australia’s property market by buying into a long-term loss-making venture? To provide long-term cheap housing for their fellow hard-working Australians?

I think not!