My decision on election day has become easier after Federal Treasurer, Wayne Swan, today ruled-out making any changes to negative gearing rules, which cost the taxpayer around $4 billion currently. From News.com.au:
FEDERAL Treasurer Wayne Swan has ruled out supporting any changes to the existing negative gearing arrangements…
“We ruled out any change to the existing arrangements in our response to the Henry (tax) report,” Mr Swan told reporters in Adelaide on Tuesday.
“It appears that the Liberal Party have thrown open that whole discussion. It’s entirely a matter for them.”
So the Treasurer deems it necessary to cap productivity-enhancing self education deductions on the basis that they are unlimited, yet sees no issue in permitting investors to claim unlimited deductions on loss-making rental properties. This despite the data showing that negative gearing does absolutely nothing to enhance rental supply or affordability, whilst adding to demand and pushing-up costs for first home buyers.
