From the AFR on the BIS monkey poop scandal comes John Daley of the Grattan Institute:
“Voters should be asking themselves whether a responsible government would rely on this sort of nonsense in a public policy debate,” Mr Daley said.
” The problem is that these for-hire economic consultancies are paid to run a model, they stick a bunch of silly assumptions into the model and everybody is asked to believe whatever comes out.”
On price impacts:
“Divide $5 trillion by $100 billion and it implies that the value lost from changing negative gearing rules is about two per cent of the value of residential property, not six per cent.”
On rents:
“For every property that is no longer owned by an investor, there is one more property owned by an owner-occupier. Therefore there is one less renter and one less rental property. There is no change in the supply and demand for rental property, and therefore no change in rents.”
Release who commissioned the report, BIS. My guess is it is Coalition backbenchers who we know were mulling just such a move.
