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Everything old is new again Dear , Paul Keating tried abolishing negative gearing. It lasted about two years before a bump in house prices forced him to reconsider. How long will it take Jim Chalmers who not only wants to abolish negative gearing but go back to Keating’s system of taxing capital gains to copy him? And when will he do something other than repeat the mistakes of Labor governments past? It’s perhaps fitting that in answer to this latest outrage I dusted-off research that we commissioned from Gene Tunny almost exactly 12 months ago criticizing the Greens, who were the only party promising to abolish capital gains and negative gearing. Now the ALP has gone all Greens the research projecting an average increase in rents of $83 a week was all ready to go, so I reissued it as a media release (to read click here). I’ve attached the research as well. When the AIP was first established home buying was the housing affordability challenge. This was because the Reserve Bank’s absurdly low interest rates had caused house prices to rise to such an extent that saving a deposit was the major problem. Repayments were still manageable because of the low rates. Now, because of the madness of immigration policy, combined with a government that spends like a Kardashian with a credit card, house prices have sky-rocketed, even as the RBA comes to its senses on interest rates. That’s horrendous for homeowners because those interest payments have doubled, or more, but it has also forced up rents to the stage where most renters are paying more than 30% of their income in rent – that’s the definition of housing stress. Now those rents are going to go even higher as the government takes away legitimate tax benefits from private landlords in the name of “intergenerational equity”. Yet renters are likely to be younger and poorer, and also likely to be Greens or ALP voters. What sort of intergenerational equity would cause rents to rise for this group, and what sort of thanks to them for keeping you in power? Not that young Australian renters will realise what the government is doing to them, unless we tell them. There are a lot of angles on Chalmers' tax policies which will keep me busy up to, and after, the budget. I’ll share as many of them as I can with you. Kind regards, GRAHAM YOUNG 
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