Listening to you comments on ABC's AM today, I was quite taken back by your suggestion that business confidence would be rocked, should the budget measures not be implemented, as a loss in confidence in the business sector could lead to a lack of investment, investment that often, brings with it, among other benefits, tax right offs, in other words, negative gearing.

So, please explain this, as you are a long term critic of negative gearing, please tell me, if you were granted your long pleaded gift, to remove NG, what effect do you think that would have on business confidence?

I'm sorry, but you can't have a foot in both camps, so either you are pro investment, which comes with NG, or you are not.

Which one is it?

As a frequent poster on OLO, I have posted this letter there for others input and opinions.

Thank you for your time.

Perhaps they should remove negative gearing from domestic housing as this will reduce the cost of housing.This will have to be done in stages.

We have to get Govt out of profiteering by limiting the supply to keep land costs high. Apparently a lot of overseas investment and self managed super is driving our prices way too high.

This is how the vast majority of people accumulate funds, by legally robbing other people via exorbitant real estate prices. This makes the already quite well off, even better off. It also makes it near impossible for financially unestablished people to effectively accumulate funds, other than by the highly inefficient and ineffective method of saving one's wages. That's capitalism.

so either you are pro investment, which comes with NG,
rehctub,
This is exactly what will change eventually through sheer necessity. How would you it wouldn't work ? Have you ever gone witha flat tax ? You know the one where everyone pays the same rate no if's no but's ? Don't say it won't work just because you're stuck in that old rip-off system that made so many totally undeserving & incompetent operators wealthy.
You don't need to be a manager when all you need to do is write everything off ? A real manager can do that without write offs. Just look at your average working class family how they manage. They manage multiple times better than our so-called business people because families don't have that license to exploit that system.
As I said, necessity will bring us a flat tax eventually. The real success managers will defintely dwindle rapidly in numbers.

I was wondering why anyone would want to buy an investment property without negative gearing?
If negative gearing was stopped, then many people wouldn't buy houses or units for investment.

Where would people find houses for rent then?
It is extremely hard to find houses for rent as it is, and state housing is only available to very low income earners.

If negative gearing was stopped, then many people wouldn't buy houses or units for investment.
Suseonline,
Well, I think if NG were to stop more people would buy accommodation rather than rent. Would the developers be game enough to try ? Of course not, that's why they're pushing so hard for NG to remain so that they can profit from the taxpayers forking out for them instead.
Why are so many people always harping on about fairness, level playing field & all that warm n'fozzy rhetoric but mention real fairness & level playing fields such as flat tax & no NG & they predict the end of the world. It's not, it's protecting a greed-based system for the greedy by the greedy. It's easy to have a million Dollar boat in the marina when it hardly cost you anything because the working class taxpayer foot the bill. Ah, yes the AWU etc really did a great job protecting the greed mongers who have ruined so many economic success stories.