Rents will be adversely effected if they let in another 50,000 plus economic invaders like Dudd & Dillard did.

We have to house them at the expense of homeless Australians.

Kirby483,

"Firstly , if you alter the tax advantages of owning a investment property, it becomes less attractive, so less Mums and Dads will own an investment property, meaning more demand on government housing and rents increasing (demand exceeds supply)"

Oh yes!...the "Mums &Dads" thingy is already taking effect.

Just so you know - The top 10% of earners collect almost half the negative gearing deductions.

"The RBA then showed that the average low- and middle-income earner is much less likely to use negative gearing han a higher income taxpayer. And this trend is increasing. About 30 percent of people on over $500,000 negatively gear up from about 20 percent a decade ago. But the share of people on between $25,000 and $100,000 who negatively gear has fallen.

The share of people on under $25,000 has grown which probably reflects people who have other sources such of non-taxable income such as super.

The other point the RBA makes is that while there are some low income people who negatively gear they receive much less benefit on average than richer ones."

"Many high income people have multiple houses and more expensive houses on which they deduct the mortgage costs against their incomes. Low income people might have a single flat. The tax savings go overwhelmingly to higher income earners."

http://www.afr.com/news/politics/negative-gearing-four-graphs-that-show-it-is-mostly-for-the-rich-20160214-gmu2vu#ixzz46xt0k16E

"House prices might drop by about 2 per cent, Grattan Institute chief executive John Daley said. "These changes will make housing more affordable. They will have minimal impact on either rents or the rate of new development."

http://www.afr.com/news/politics/grattan-institute-backs-labors-negative-gearing-policy-20160425-goe2op#ixzz46xtiZArl

Analysis:

http://www.macrobusiness.com.au/2016/04/grattan-demolishes-turnbulls-negative-gearing-lies/

Existing negatively geared investments are fully granfathered. New builds will still be able to be negatively geared. Labor's policy will apply from 1 July, 2017 giving plenty of time for the market to adjust. The only impact on rents would be to reduce them.

yes Philip, it's almost becoming a situation whereby we are still the lucky country, so long as you're not born here.

Surely at some point our lawmakers have to come to the undeniable conclusion that we, as tax payers, can no longer fund the 'wish lists' of our politicians who's decisions are so often made through the persuasion of the do-gooders who seem to give no consideration to the needs of our own.

Like the illegals, refugees and Muslims, not all but most certainly those who quite obviously come here to feed off our generosity, or the indigenous folk who choose to live in remote areas with no prospects of making a better life for themselves, and most certainly their kids.

At some point the tax payers are going to say, enough is enough. As hasbeen said in another thread, give them a tent to live in and three cans of beans a day, and watch them change their ways. We should also forget the earning or learning slogan, because that's all it is.

We have simply allowed ourselves to become a soft target for public purse manipulation, yet, as soon as a Tony Abbott comes along, all hell breaks loose. Well like it or not, a Tony Abbott style leader is all that will dig ourselves out of the hole we have created. But I can't see that happening until we plunge into a deep recession, or perhaps even a depression.

At some point the gloves must come off.

rehctub,

"We have simply allowed ourselves to become a soft target for public purse manipulation..."

Negative gearing is public purse manipulation...you appear to be in favour of that.

"Sales countered with figures from a recent Grattan Institute report that showed the top 10 per cent of income earners received ¾ of taxable capital gains.

"These policies favour most people who are on the highest incomes," she said."

http://www.smh.com.au/federal-politics/political-news/malcolm-turnbull-grilled-on-abcs-730-over-negative-gearing-common-sense-claim-20160426-gofnv9.html

Public purse manipulation at its finest.....

Mums and Dads.
Do you want your kids to own a home.
The lucky ones our community own their own home.In the 1960's it was possible if both worked to pay off a mortgage in ten years.Today a young couple starting out to buy their first home and both working will be lucky to have five years of working life left before they finally pay off the mortgage.
So what has gone wrong.
House prices have risen around the western world at a similar rate as Australia.
There is a difference.UK homes are close to good public transport and mortgage payments are Tax deducted as well as the homes being double storey and double brick.
Compare an Australian home being knocked up today on a timber frame and often described as Dog boxes.
Young couples both have to work and if they do not have a deposit will be forced to pay a negatively geared wealthy landlord who is not paying tax at the same rate as the tenant.Who has to pay between 33 and 37cents in the dollar while the landlord is claiming a deduction of mortgage payments etc.
The lucky Australians who can give their children a deposit and in some cases a home will see their children claiming tax deductions as negatively geared or correctly described as TAX AVOIDERS who start competing to buy cheaper homes for rent.
As much as it hurts me to say the Labor party are correct to stop the rich getting richer on the backs of the poor.
Australia used to ride on the sheeps back.Today many are riding on the back of the poor.
Negative Gearing must stop.One argument is that property prices will
drop.Good, give somebody else a chance.And what is to stop a property owner with a couple of homes selling them and giving the cash to their children then claiming the Full aged pension.
This Tax avoidance wrought must end.

Do wake up Poirot!

Applying the legitimate costs of earning a profit against that profit for tax purpose is a standard business practice.

It shows how little most understand business & taxation that they can refer to the practice as negative gearing, it is not. The Labor party, & the welfare industry have fools believing the slogan has some meaning. This is just another instance of Labor applying the politics of envy to con the fools.

In it's most simple form it is this principal, this allows you to deduct the cost of wages from your income before paying tax on profits.

What they are really referring to is quarantining the loss in one enterprise, domestic rental, from the profits of another "business" in this case earning a wage or other worked for income.

It is no accident that this is not applied to domestic rental. The business is so low in profit that no sane person would invest sufficient capital to fully own property for domestic rental without this sharing of costs between earning activities.

I have a detached granny flat, which of course I own. I know how much it costs to maintain, when it is lived in. I have never rented it out for that reason. I t is bad enough when I've had various of my kids live in it for a while. Renting it out would be a very bad idea.