Property market: Negative gearing is not a rort but a principled, fair and efficient feature of any tax system

So-called “negative gearing” is public enemy number one and is said to single-handedly be responsible for Australia’s housing crisis.

That’s bizarre because these claims are completely wrong. Not difference-of-opinion wrong but logically-and-factually-incorrect wrong. Maybe it has something to do with the name. If these expenses happen to exceed revenues, so the asset makes a loss, then the investor’s tax liability is negative and in an ideal world, the government would refund it. That is what is required to collect tax revenue on capital returns in an economically efficient manner. Any deviation from that benchmark destroys economic activity, plain and simple.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Using superannuation for property investing: Surge in self-managed super fund property investmentA growing number of property investors who have “tapped out” their personal borrowing capacity are using their self-managed super funds to borrow more, advisers say.
Source: FinancialReview - 🏆 2. / 90 Read more »