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Negative gearing is the tax dodge for the rich. It is a rort — there is no other reason for it to exist. Sharing a loss from one venture (in this case, real estate) among the tax from another (your day job) should be allowed for all classes of workers or for none. People like artists, musicians and hobbyists spend a lot of time and money trying to make something from their part-time work. They have to foot the bill themselves with after-tax dollars. Yet the government subsidises real estate losses. Why? Because real estate owners generally have a lot of money, or at least middle to high income day jobs, and so collectively have more sway at the political level than the ordinary income earner. Add to this the many politicians and their buddies in business who enjoy the benefits of negative gearing, and it all starts to make sense. The government should take its pick, one way or the other, and make one rule for everyone. That way everyone has an equal opportunity to rort the system.
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