Greg explains the problem with negative gearing in 60 seconds: "It is a tax minimisation scheme disguised as a housing policy, most of the benefits go to the wealthiest and it massively distorts housing prices." Greg Jericho on The Project #auspol

@GrogsGamut @theprojecttv Greg has no idea what he’s talking about. It isn’t a housing policy. It’s a feature of the tax act which has been in place for nearly 100 years and it applies to just about all sources of income. Also, there is no evidence that it massively distorts housing prices.

I'll break it down in 30secs. They are running a small rental accommodation business. They are intitled to claim costs. They are investing in this business to build financial security for themselves / their families over time. They DON'T intend for that business to be running at a loss indefinitely, but like other small business, when they start, they might make a loss in the early years. Later on that property becomes positively geared - and the business owner pays tax on that income. They also pay capital gains tax when they sell their business.

@GrogsGamut @theprojecttv Greg is basically an idiot who doesn't understand economics or tax law. Any expense incurred in producing Investment income is an allowable deduction - INCLUDING INTEREST EXPENSE. There is no reason why investment properties should be excluded.

@GrogsGamut @theprojecttv As usual, Greg & his socialist discourse is off the mark

@GrogsGamut @theprojecttv So if they remove negative gearing, wouldn't rents just go up so the loan repayments are covered?

@GrogsGamut @theprojecttv Stupid explanation. An investor could own a REIT and reduce tax with property. Investors claim negative gearing but then also pay capital gains and land tax, which an owner does not. Victorian investors are fleeing the market and setting an example for the rest.

@GrogsGamut @theprojecttv Its not tax avoidance, its tax transferring. If you think the Australian government is missing an opportunity to steal out money.. you are insane. Its all made up, and more in capital gains tax upon selling.

@GrogsGamut @theprojecttv You guys make some good points but your credibility is non-existent because you refuse to say that immigration is a primary driver of the housing crisis. Totally dishonest. Do better.

@GrogsGamut @theprojecttv Greg not quite correct The principal portion of the monthly loan payment not a deduction, assuming the payment P&I - it's just the interest component on said borrowing .

@GrogsGamut @theprojecttv Still. When Bill Shorten went to an election with the policy of abolishing it he lost.

@GrogsGamut @theprojecttv