It's interesting to read and hear that everyone's view except the average investment property owner. My view is that I couldn't care less about capital gains tax because of the type of properties we have are unlikely to accrue above the indexed amount, however I do believe it will deter others, and restrict renovation prior to sale as it will only go straight to government coffers after sale.
As for negative gearing, I predict it will go the same as in 1985 when it was abolished, it lasted only lasted 3 months before it was quickly reinstated, the housing market ground to a halt and virtually nobody was buying or selling. No money was coming in and government revenue from stamp duty and taxes!. I personally might have to pay $3000 tax bill. My option most likely would be to keep the property that's neutral and sell the one that's not. To be honest, really its not worth having an investment property, as you always are paying out with the hope to make a good return on sale, but not everyone makes a return, some like my sister who sold her house for $10,000 less than she paid for it 10 years earlier. The old saying goes, you must have risk for return, however, if there is no return, there is no point in investing in the first place. There are better investments.

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Agree with Greg's comment, it didn't work when Keating did it years ago and Labour seem oblivious to this fact.
If prices do drop, as expected, due to all the investors vacation the property market.........where will all the tenants live.
Are Labour assuming that there are a whole heaps of tenants just sitting on $100,000, waiting for prices to drop?
I for one will need to raise my tenants rent. I've never raised the rent during my leases, no matter how long they last but I won't be able to keep that up.

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how stupid are the labor party to ignore history. Rents will double overnight and the meltdown will occur again. its up there with giving everyone $900 which mostly went straight into poker machines. if there wanted to do something clever then introduce generational loans like they have in Japan. They would show common sense..never a labor strongpoint!

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The Labour Party's initiative to scrap negative gearing is fundamentally irresponsible to say the least. Having an investment Property isn't just about tax deductions. It encourages long term investment with the added benefit to be more financially independent and self sufficient in retirement whether it be through selling the house or receiving weekly rent. This in turn makes you less reliant on the Governments pension. After all that's what we are encouraged to do. The returns or tax benefits from rental properties goes back into the economy.
The generational loan as mentioned by Grant Tracy seems a great initiative. Labours history speaks for itself. The Aussie battler doesn't have the privilege to dip into a Union Slush Fund Bill!!

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