A letter about
negative gearing & a Petty cartoon
in The Age Newspaper
Saturday 5 July 2003
 
 
Why negative gearing is wrong

Mark Latham is right to support a review of negative gearing.

It is just a tax break for wealthy property investors that should be raked in to build public housing for those in desperate housing need.

Our clients, many over 70 years of age, are being told they will have
to wait up to 16 years to get an offer from the Office of Housing.

Those who support negative gearing say it increases supply of private rental
housing. That may be true, but not for those who need it most.

While the rental market grew substantially between 1986 and 1996, the stock of
low-rent dwellings declined by 28%, with an estimated shortage of 150,000 affordable dwellings nationally.

Thousands of people on aged pensions are paying an average of 64% of their
income in housing costs in the private market for often sub-standard
housing. On these cold days they can't afford to turn on the heater and they
rely on food parcels from welfare agencies to survive.

The fact that Simon Crean has immediately dismissed any suggestion of
reviewing negative gearing just shows that the Labor Party are firmly in the
pocket of the big end of town.

Or is it because many politicians are property investors themselves?

Jeff Fiedler, Housing for the Aged Action Group, Melbourne