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Greg

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 #1 
Negative gearing is just a tax evasion tool that many who bought into city high rises may yet regret.
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Bruce

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 #2 
If one makes an investment that incurs tax relief made to encourage that investment, then when the return is made [i.e. the capital gain in this discussion] there should be tax on that investment whether it be income or capital gain.  this should apply to all kinds of investments.  Simple, really.
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Greg

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 #3 
100% inflation-adjusted capital gains tax should apply to all properties on which interest has been allowed as a tax deduction.
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Bruce

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 #4 
I think we have another issue here additional to negative gearing.
i totally agree with the sentiment, Greg.  however, it will not stop the problem gamblers.  they will gamble anyway.  gambling is too difficult to trace and track so i don't think we'll get anywhere with that.  How would you do it?  licence all gamblers? government spying on all PCs to catch the online gamblers?  it could just drive them underground and that would lead to criminal activities like blackmail and extortion.  an easier way to work is to tax the gambling organisations on turnover.  this would make them widen the odds to cover the cost of the tax which would make it a bit harder for winning profitably, but at least it is taxing what is a social evil and a blight on our society, and maybe [just maybe] it could fund research and rehabilitation of problem gamblers.  somehow we have to get to the minds of the gamblers that gambling is a  winning game for the organisers only.
make life difficult for the organisations to suck people in to destruction.  make them do all the paperwork and track the gamblers' winnings and lossses.  if it becomes too difficult to run legal betting on horses, etc. and very expensive to have the one-armed-bandits in a pub or club, then such activities will be cut back.
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Greg

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 #5 
Agree Bruce or we have less services and infrastructure or our governments go into more debt to enrich the moneylenders at our expense.
Negative gearing does not benefit high end taxpayers so much as it benefits the moneylenders or bankers. That was its original aim. It was a tax avoidance scheme that depended on taxpayers preferring to pay interest to the bank than tax to the govenment.
We should also be taxing gambling earnings.How absurd is it that a person who earns money by working pays tax but one who makes money by casual gambling does not. It would be easy to tax all gambling winnings and allow gambling loses only against gambling winnings just as it would be to allow interest on rental property purchases only as a tax deduction against rental property earnings. 
What do others think?
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Bruce

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 #6 
I actually think it is worse than that.  it does not worry me that people with more money than I can use their good fortune or hard work to make more money.  But negative gearing is a means of making money by reducing your tax payments.  this means then that those with less money have to pay more tax to make up for the tax relief which the richer ones obtain by having to pay less tax.
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Darija1

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 #7 
Only rich people have a lot of money to buy multiple properties can benefit from it, honest hard working people who pay its taxes and have only one property to live in with or without family is no benefit what so ever, so our politicians not all of them can have benefits from negative gearing and of course big business. Our PM he is one who will benefit and other like him.
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William2

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 #8 
Negative gearing is NOT a scam and is perfectly legal form of investing. I used negative gearing to build wealth and become a self funded retiree so I could retire early and not be a bludger on the public purse.
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Bruce

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 #9 
Ronald's idea makes sense to me.  a loophole of this nature encourages tax 'fiddles' which go completely against the intent of the legislation.
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Ronald1

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 #10 
In most countries, losses from any class of asset investment cannot be offset against income salary. Investment should be made with the intention of building wealth, bad investments should not be allowed to be offset against salaried income through negative gearing. 
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Greg

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 #11 
Negative gearing is a tax scheme for people to avoid tax on other income and a plan to boost bank profits because negative gearing specifically involves borrowing and paying interest to incur a deliberate loss. The borrower receives a  tax deduction of say 30c for every $1 of interest and the bank gets $1. You can see who benefits most from negative gearing.
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Greg

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 #12 
Bruce hits the nail on the head when he talks about the risk of negative gearing. It causes a loss of real money with the aim of getting a tax deduction. I have never been too impressed by the idea of losing $1 to gain a 40c tax deduction instantly.

People do it because they enjoy the tax deduction instantly and forget it cost them $1. They focus on the capital gain they may make. However discounted cashflow allows us to see that the money we get in 10 year's time is not worth the same as money in our pocket today. To nsome extent the capital gain on property is illusory.

But the big risk comes from a downturn in property prices, upturn in intereset rates or a change in personal circumstances all of which can lead a borower to default and a bank to foreclose. When that happens the bank usually imposes a level of charges comparable to buying a Ferrari. Accountants and lawyers who are friendly to the lender get involved at astronomical prices.

Investing on negative gearing means that the borrower takes all of the risk and the bank enjoys  about half of the profit. To me investing is what you do with spare money, not what you go into debt to do. It is true what my family motto says "Fortune favours the brave". Those who takes the risks can make big money and I think that about 5% or 10%, the smartest at that sort of thing, do. The other 90% to 95% often lose money.
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Bruce

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 #13 
I have never used negative gearing.  I believe it is too risky a form of investment.  I would not loan money to someone who would use a loan for such things voluntarily.  however, that is exactly what I am doing when my taxes are going to someone who does use negative gearing.  they are using my money to make profits and run a risk of it going sour, and when it does, it is my money that is at risk.  that is one aspect of negative gearing I don't like.  the other is that I believe socially when negative gearing is done with housing it has an effect of pushing up prices and making it difficult for those in the lower income levels to achieve security of tenure in a home that is purchased at a reasonable price.  so -- if we can get rid of negative gearing I am in favour, but it will be a political battle that has to be fought;  the few for whom this is a benefit are powerful influencers [e.g. our polititicians among others]
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Greg

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 #14 
Tax scams or not, we all do what the tax laws provide and it is not unreasonable to assume others do the same. It is fair to take advantage of perks offered by the laws, if others are going to do that anyway.
Have you ever used negative gearing nd what sor of benefits did you fell it gave you?
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Greg

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 #15 
negative gearing is just a tax scam.
Letting businesses claim back the GST they pay from what they collect from us as customers is annother tax scam.
We should make businesses pay GST like the rest of us, without passing it on to us.
We should abolish the Payroll tax which penallises employers who employ people and encourags them to instal far inferior mechanical or electronic services like phone ansering menus that ask you to wait an hour or robots that do what people used to do quite well.
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