Cross-posted from The Idiot Tax:
The negative gearing war is being waged across ‘straya and it has taken an important turn. For years the rebels have been mercilessly shelled by the real estate empire, who’ve used a combination of lies long deemed to cause unacceptable harm to the amygdala. The rebels found the locations of empire’s lie factories and one by one they’ve been destroyed. While ongoing production of lies has been stopped, some pre-existing lies are still in general circulation. Though they’re only being used by the most brazen of scaremongers.
Now you have to watch out for more deadly and emotive lies like “mum and dad” clusterbombs, “Labor tried and failed in 87” landmines and “won’t raise much” white phosphorus.
Tasmanian Liberal strongman, Andrew Nikolic, in between attending letter openings, has come out furiously against another mad Labor thought bubble.
Mr Nikolic said he was worried the changes would skew the housing market, and negatively impact mum and dad investors. “I want to make sure the people affected by this are not everyday Australians . . . the suggestion negative gearing is a safe haven for the rich is ludicrous,” he said.
And when confronted by dissent in the comment section of his local newspaper, Andrew had his copy/paste finger ready to go when Gary McKie (not me) took a cheap shot.
Mr Nikolic parroting the party line. Well there’s a surprise. He says is worried that poor mum and dad investors will be affected, but given the small percentage involved the reality is he’s worried that his wealthy mates will be affected. Yet another policy reaction protecting the wealthy at the expense of everyone else.
Gary McKie, Your comments do not reflect the facts! The vast bulk of people with negatively geared investment properties are AVERAGE income earners. 883,325 of the 1.266 million people or 70% of those claiming the rebate earn less than $80,000. It is worth noting that investment properties are the third most popular savings vehicle in Australia, after the family home and superannuation. 73% of people accessing negative gearing own only one property and 18% own two. Negative gearing is not a specific tax concession. The term ‘negative gearing’ is a colloquial term for legitimate tax deductions for financing expenses associated with investments. The principle of allowing deductions for expenses incurred in the earning of assessable income is well established in our tax system. You might recall that Labor briefly removed negative gearing in the mid-1980’s but had to quickly reintroduce it. Trying to limit negative gearing to non-property investments or limiting it to new property only would be administratively complex and Labor has not thought it through.Andrew Nikolic, Member for Bass
Hi Andrew, I know this isn’t your area of expertise, and it isn’t mine either. This link debunking much of what you’re copy-pasting might be beneficial for both of us: http://www.macrobusiness.com.a…
Nikolic was already dug deep into his trench and when confronted with a macrobusiness negative gearing bunker buster, doubled down on copy/paste beast mode
It is worth noting from ATO Tax Statistics released in April 2015 that:* More police personnel negatively gear than specialised tax accountants, management consultants and university lecturers. 22.6 per cent of police negatively gear. This is a higher percentage than consultant tax accountants (17.3 per cent), management consultants (16.7 per cent), and university lecturers and tutors (11.9 per cent).* More ambos and paramedics negatively gear than accountants, financial advisers and economists. 19.2 per cent of ambulance officers/paramedics negatively gear. This is a higher percentage than accountants (18.0 per cent), Financial Advisers (17.4 per cent), and Economists (15.6 per cent).* More train and tram drivers negatively gear than solicitors, real estate agents, and veterinarians. 18.9 per cent of train and tram drivers negatively gear. This is a higher percentage than solicitors (17.2 per cent), real estate agents (18.6 per cent), and veterinarians (12.6 per cent).
Bringing the scorn of some who accused Launceston’s most photographed man of cherry picking. Little Nikky also interpreted Labor’s negative gearing proposal for his Facebook audience using the following
Many people will recall that Labor briefly removed negative gearing in the mid-1980’s but had to quickly reintroduce it. When Labor removed negative gearing there was a marked rise in rental prices, especially in big cities like Sydney and Perth. Trying to limit negative gearing to non-property investments or limiting it to new property only would be administratively complex and Labor has not thought it through.
And why else do you speak directly to your fans?
Occasionally there’s a problem with social media. In among the “we love thinking for us” and “bloody labor again” someone (not me) posts a link to a macrobusiness negative gearing bunker buster.
But Andrew doesn’t bite at the facts. Wants to get back to Labor and why it didn’t work in the 80’s – clearly expecting some Labor stooge who thinks in political binary, but Lance Armstrong is having having none of it.
Did little Nikky come back and smack down Lance Armstrong. Of course he did.
Ruddy Labor not raising enough money and throwing mums and dads under the bus! Of course social media quickly moves on and after you’ve won the battle by not playing, it’s time to remind everyone you have a puppy.
Awww, isn’t he cute?
Wait, what were we talking about again? Something about bloody Labor ripping off Mums and Dads who are saving to buy their kids cute puppies?
Awww, isn’t he cute?
