Negative Gearing.

The term "negative gearing" is not to be found in tax legislation. Yet, since 1936 it has been in operation when the then United Australia Party in government under Joeseph Lyons, installed it under the belief it would encourage investment in housing and increase supply. However during 1985,debate around it's impact on housing affordability lead the Keating government to partially abolish it. During this time a big lie was promulgated that "rents went through the roof" which was not in fact true. Apparently Sydney and Perth rents arose marginally but in other cities, rent inflation,actually fell.

Defenders of negative gearing apparently like to claim that most of those using it are people with taxable incomes of less than the top tax threshold. Another lie, Australian taxation office statistics show that those in the top tax bracket are three times more likely to be using. Doesn't that imply that our parliamentarians and top public servants are among the biggest users? After -all they would most likely be in the top tax bracket and if asked to declare their negatively geared investments, would duck and dive to avoid answering.

Negative gearing is undoubtedly one of the many lurks and perks that our party politicals have conferred upon themselves, almost since Federation but certainly post the Second World War.

With a parliament of independent members appointed by their individual electorates and answerable to them respectively, the cost of running government would reduce significantly, if not more than halve.

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