ABC Lateline included a segment on housing affordability, and an extended interview with Angus Taylor, Assistant Minister for Cities. His focus was on supply side issues, but he rejected the notion that investors, and their tax-breaks have messed with the market. He suggested the only way to examine the property sector was at an aggregate level, rather than looking at the behaviour of specific groups. We are not convinced!
Grandfathering negative gearing will destabilize the market?
So, by his own admission, negative gearing (and also capital gains discount, which they didn’t mention) have distorted the market to the point where they can no longer be removed! Genius!