B Guy, Lismore
1) Any person who currently negatively gears a property will NOT be affected by the new ALP rules. This means that all those properties currently for rent will still be available and there is no reason rents should rise because of the new policy.
2) Investors will still be able to negatively gear a property, as long as it is a newly built one. This means that new properties will come onto the market, increasing, not decreasing, the number available for rental. This will also provide increased employment for the building industry. Again, there is no reason rents should increase because of ALP policy.
3) The distortion of facts by vested interests, especially the current coalition, should be carefully investigated. Of the approximately 2.2 million landlords in Australia, less than half of these own one property, the rest own many more, some up to 15. This type of investor has bought properties via the gift of negative gearing (whether taxpayer funds are given from Australian Tax Office (ATO) or Centrelink it is all a form of welfare). Why should all taxpayers pay for the increase in wealth of a few, while other taxpayers cannot afford to buy even one property? Negative gearing is an obscene use of taxpayer money. This year almost $6 billion has been handed over to investors, with the top ten per cent already multi millionaires. Six billion is equivalent to the amount spent on all public schools. It is economic madness and Australia is the only country that has this wasteful policy.
4) Perhaps if the current government had encouraged wage growth and had sufficiently increased Newstart/Pensions, then rents might still be affordable.