Tweaking negative gearing can help everyone
September 25, 2024 — 8.00pm
Credit: Cathy Wilcox
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It is hard to argue that investing in property shouldn’t be treated differently to any other business. All expenses should be tax deductible. The problem lies in the ability to use these tax deductions to reduce other taxable incomes. Would it therefore be better to tweak the system, to allow losses to be carried forward for the duration of the investment and offset against any future profits and capital gains? Negative gearing could then be maintained as a fundamental right, while reducing its impact on the housing market.David Mayo, Brighton
Major parties’ blatant hypocrisyRoss Gittins (Comment, 25/9) exposes the blatant hypocrisy of Labor’s Help to Buy and the Coalition’s Super for Housing schemes. Both schemes ″help push prices higher″. Restricting the excesses of negative gearing and capital gains concessions and boosting social housing might just entice the Greens to support Labor’s program.Kevin Burke, Sandringham
There are reasonable optionsIt’s clear that Australians are unwilling to aggressively tackle outdated wealth building schemes such as negative gearing on housing, and franking credits. It is a fair argument that many thousands of people worked very hard over many years and benefited from various government policies at the time to, in particular, buy a second house, or boost their superannuation. It is understandable and reasonable that people wish to retain this. However, it is also true that inequality and poverty is growing exponentially. It seems a sensible approach by government to tweak rather than make radical changes to negative gearing policy, and hopefully begin the process of incremental moves towards more economic equality. Putting a cap on the number of houses that can be negatively geared by an individual makes sense.Who could say, with hand on heart, that this is unreasonable?Fiona White, Alfredton
Labor, look after the working peopleIt is widely acknowledged by housing experts that supply is the main issue in the housing crisis. Of course other factors are in play, but supply is the main one. It is good news therefore, that finally the federal government is apparently considering altering the legislation on negative gearing and capital gains tax concessions (“Labor puts negative gearing in its sights”, 25/9). Housing should be a primary right, not an opportunity for investment and wealth creation and altering the legislation would free up more properties for owners. Labor is supposed to be the party looking after the interests of working people and needs to act on this, not just consider it. Chief political correspondent David Crowe (Analysis, 25/9) thinks altering the legislation will risk the government losing votes. Not doing it will risk a lot more.Jan Marshall, Brighton
The government can make a differenceIt’s nonsense to pretend that Australian interest rates are outside government control. The real interest paid by negatively geared investors is only loosely based on rates set by the Reserve Bank, being substantially reduced by income tax deductions determined by the federal government. Mortgage rate pain inflicted in the name of inflation control, is thereby focused on home owner-occupiers, who are entitled to no such tax deductions. That’s got to stop, one way or another.Lawrie Bradly, Surrey Hills
Abolition is the way forwardThe gradual abolition of negative gearing and capital gains tax concessions can only defuse the demand for housing by investors and ease the rise in the cost of living. It will slow the inexorable upward spiral of rents and allow the RBA to cut interest rates sooner. Forget other housing shortage solutions. Abolition of negative gearing is the big one.Geoff Black, Frankston
THE FORUMA doctor’s worthI have just endured breakfast TV with a pharmacist talking about the 23 medical conditions that they can treat instead of GPs. This has been an incremental process of getting everyone on board with the new idea.If general practice is in trouble then we should fix it by ensuring that there are sufficient training pathways leading to what should be a wonderful career choice, and structural reform to develop and retain our workforce and ensure fair distribution across the nation. Bulk billing is superficially attractive but it means that someone else is paying, usually the taxpayer. Free care at the state-operated hospital emergency departments has led to dysfunction, and consequences such as ambulance ramping.Going to the pharmacy is not free – they get government support and the opportunity to sell something on the way through. How would you like to be able to buy some shampoo while at the doctors’ clinic? Doctors put in a lot of effort to get to where they are (and to stay there – called continuing professional development).The medical consultation is a bit more complicated than dividing it up into 23 easy problems, and involves separating all that out from a million possibilities. After more than four decades in general practice I still had to pay close attention to the ″easy″ problems, and look beyond the obvious.Dr Clyde Ronan, Yarrawonga
Peloton heavenColumnist Fiona Austin captures the essence of life in Beaumaris (″Cinderella really a mid-century belle″, 24/9). To add to what makes ″Beauie″ special, we need to add the historical marker along the clifftops, just past the former Beaumaris Hotel, celebrating the Heidelberg school of painters Tom Roberts, Arthur Streeton, Charles Condor and Frederick McCubbin from the 1880s who drew inspiration from Beaumaris and who captured the blend of beach and tea-tree found along the cliff tops – a runner’s delight. Riding along Beach Road through Beaumaris is a peloton’s heaven.Nick Toovey, Beaumaris
The magpies replyI grew up in the “Cinderella suburb” in the ’50s. A wonderful place. Still is. As a timid wretch in grade 1 in 1952, the headmaster came in, apparently to set us at ease. He asked: “Who do you barrack for?” I had no idea what the word meant. Working down the rows, he closed in on me. “And you, lad, who do you barrack for?” “Collingwood” I blurted in panic. A previous savvy student had said Collingwood, to which HM replied: “Ahhh, the Magpies, hey.” I knew magpies. The big gumtree at the bottom of the schoolyard was full of them.Chris Waters, Ormond
Here be the lessonLess may be more, but it is certainly not fewer. Readers of a sensitive pedantic disposition may have shuddered at the ungrammatical ″less tourists″ (Letters, 24/9) and ″less visitors″ (Letters, 25/9), and lament that few people seem to know the difference between “less″ and “fewer” – that “less” is for quantity or amount of things that are measured, as in ″less time″, while “fewer” is for number among things that are counted, as in “fewer tourists” or “fewer visitors”.Then again, fewer and fewer people seem to care that there is less linguistic accuracy, or appreciate the loss of linguistic finesse and subtlety of meaning that accompanies it.Deborah Morrison, Malvern East
Is boxing a sport?The article ″Coroner finds boxer’s death preventable, calls for concussion rethink″(24/9) reported on the coroner’s findings after the tragic death of an 18-year-old who suffered concussion from boxing at a gym. The coroner found that medical staff could have done more to diagnose the issue:in particular ordering a CT scan which may have revealed a subdural haematoma.What the report does not contain is any reference to the foolishness of boxing in the first place. How is belting others about the head accepted as a sport, especially when we know so much more about the issues surrounding concussion and the long-term effects?The coroner says that ″the broader purpose of coronial investigations is to contribute to a reduction in the number of preventable deaths”.Surely, reducing harm by curtailing boxing comes under that purpose. But the scope of the inquest covered just the cause and circumstances of the death, and three aspects of the medical treatment. This seems unfair to the medical practitioners, when the root cause of the death was clearly the quoted “repeated hits to the head”.Robert Bell, Box Hill South
Out of this worldPeter Dutton calling on the government to “be honest” about any possible changes to negative gearing is a bit rich (″Negative gearing in Labor’s sights″, 25/9) given his lack of willingness to be honest about the cost and timeline of his nuclear thought bubble. However, given the Coalition’s abysmal record of estimating costs this is probably understandable. Inland rail is now 600+ per cent over budget ($4.7 billion to $31 billion and growing), and Snowy 2.0 600+ per cent over budget($2 billion to $13 billion and also growing). With that record of financial ineptitude it is no wonder Dutton is hesitating. It is reasonable to expect that whatever figure he comes up with, it won’t be on the same planet as the actual cost.Ross Hudson, Mount Martha
Sexing up the numbersNot long ago, speaking in millions was mind-boggling. Next came the billions, eye-watering just looking at such figures. Now, we are into the trillions (″Big investors bet billions to reap AI’s ‘eventual’ trillions″, 25/9).I Googled such words beyond trillion and came up with quadrillion, quintillion, etc. I wasn’t bothered by how many zeroes these few showed. I was more taken by sextillion; I was set for the day.Anne Kruger, Rye
Hot air conIt shouldn’t need someone of Professor Allan Fels’ experience to shine a light in the dark places of retail rorts (“Gouging may burn trust for good”, Comment, 25/9). Most consumers have long suspected that “discounts” and “sales” were often no more than PR hot air.We’ve already been through this kind of charade with the banks; let’s hope the ACCC has a better chance of dealing with retailers whose main aim seems to be to put the ″con″ in consumer.Jenifer Nicholls, Windsor
Don’t be dense MelbourneThank you for the article ″Windswept, devoid of trees: Disaster of too much housing″ (25/9) on the failings of the Joseph Road precinct in Footscray. The development of this site “maxes out” the site without any consideration for amenity, impact on the public realm or sustainability. While the behaviour of developers and ineptitude of a former state planning minister are in large part to blame, the architectural profession, of which I am a member, is also culpable.For many years architects have promoted density as “good”, with no ifs or buts attached. This is nonsense. When done well higher density can be of great benefit, enhancing amenity, community and sustainability. But, beyond a certain point, too much density, as we see at Joseph Road and in many parts of the CBD, is negative, impacting the public realm, forcing people to live in dog boxes, and providing little or no space for nature or the community. Moreover, high-rise buildings, packed in so tight they overshadow each other, are hugely energy intensive to build and to operate, the very opposite of sustainable.Well-designed medium density housing can be an excellent way of promoting liability, sustainability and community. Poorly designed and ultra-dense high rise does none of this, and benefits no one but the developers. In common parlance “dense” means stupid, and if we want a decent, liveable future we need to stop being so dense and do this properly. If we don’t more of Melbourne will be like Joseph Road: a rotten, mean and unsustainable place to live.Peter Hogg, North Melbourne
Two services togetherShort-sighted critics of the Suburban Rail Loop would have our spreadout city totally dependent on the car. We need better health services and public transport.Greg Curtin, Nunawading
Singing coaches neededI agree the footy songs are good fun but the clubs need to hire a good choir coach. The singing is appalling.Alistair Maule, Ballarat Central
And the winner is . . .We were onto a winner straight from the start at last night’s trivia comp at our local pub.Our team name, 3 Votes P. Cripps.Craig Tucker, Newport
Credit: Matt Golding
AND ANOTHER THINGPoliticsOn Monday Peter Dutton said ″the Coalition will release our costings in due course – at a time of our choosing″. If I don’t know I will vote No.Geoff Gowers, Merricks North
Would some journalist please ask Peter Dutton and his Coalition colleagues why they have such an aversion to harnessing energy from the sun.Phil Alexander, Eltham
If the LNP wins office it will be so busy repealing legislation it will never have time to pass any of its own. Fortunately it doesn’t have much.John Walsh, Watsonia
In a recent rally Donald Trump spoke about Ukrainian President Volodymyr Zelenskyy: ″I think Zelenskyy is the greatest salesman in history.″ I’m looking forward to his next publication, ″Zelenskyy and the Art of the Deal″.Tom Stafford, Wheelers Hill
FurthermoreIs negative gearing when your car won’t go?Myra Fisher, Brighton East
When will the Victorian government introduce the vehicle number plate slogan ″Victoria – the pothole state″.Sarath Goonawardhana, Chadstone
A walk along supermarket aisles can be fun guessing how much a product might be today. I definitely lost a week ago: on Monday, my favourite chocolate block was $10, on Friday, it was $3. I bought 2!Wendy Brennan, Bendigo
If we drive the two supermarket giants out of town, who or what will replace them? Will it be someone caring, not out to rip us off?Bruce Dudon, Woodend
How terrific that ″Labor puts negative gearing in its sights″ (25/9). As a shareholder, I benefit from negative gearing, but benefits for everyone are far more important.Barbara Fraser, Burwood
Three well-spaced letter boxes have been removed from my suburb. Will that bring about less mail for the snail?Tris Raouf, Hadfield
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