Following on from Judith Sloan’s poor effort yesterday, the ABC’s Michael Janda has written a ripper article in The Drum arguing that few positives can be found in Australia’s peculiar negative gearing laws, which allow investors to claim interest and other costs relating to an investment against unrelated income sources (e.g. wage and salary income).
First Janda cites the Bank for International Settlements (BIS) latest annual report, which argued that countries should design “a tax code that does not favour debt over equity”, and notes that:
