Advice from domain.com.au on how to negatively gear your own holiday house so that the taxman pays for your weekends away and annual holidays.
The Sydney Morning Herald also reported on 13 November 2015 that:
According to Tax Office data, nearly 30 per cent of anaesthetists negatively gear their properties, compared to just 3.6 per cent of cleaners.
Surgeons (27.7 per cent), finance managers (23.4 per cent), mining engineers (22.2 per cent), and lawyers (22.1 per cent) are also far more likely to use the strategy than people in lesser-paying jobs, the data shows.
Data for the 2013-14 financial year confirms the same professional occupation mix as benefiting most from negative gearing tax concessions.
It comes as no surprise that an electorate with some of the wealthiest people in Australia - the Liberal Party electorate of Point Piper held by Malcolm Bligh Turnbull MP - is also the electorate which claims the most in average rental losses from negative gearing:
Nor does it come as a surprise to find some Turnbull Government ministers have one or more geared investment properties, such as Minister for Immigration and Border Protection Peter Dutton, who in December 2015 purchased a $2.235 million two-story beach-front house at Palm Beach QLD with money borrowed from the ANZ Bank. He and his wife appear to own four other properties - two of which are also listed as investments.
In fact an est. 1 in 3 federal politicians own rental properties and ownership by party breaks down like this:
Qld Nationals senator Barry O'Sullivan reportedly owns 41 of these properties, Nationals MP David Gillespie 18 properties, Palmer United Party MP Clive Palmer 12 properties and Country Liberal Party MP Natasha Griggs 12 properties.
The second point is that Labor is only talking about removing the negatively gearing option from old housing stock that is not already negatively geared.
Current investment properties - no matter who they are owned by - will be exempt from proposed negative gearing changes.
Basically, removing negative gearing from old housing stock purchased after 30 June 2017 would predominately affect that section of society which seeks to aggressively avoid tax and accrue wealth by property speculation.
The simple answer to the question of why Malcolm Turnbull has taken his contrary stance is that this is a federal election year and the country is probably heading to the polls in less than six weeks - therefore both Liberal and National ministers, senators and MPs all need to keep their political donors, personal support bases and the property, banking and finance industries firmly on their side if they are to retain their seats and win the Abbott-Turnbull Government a second term in office.
After all, before this election year dawned negative gearing was open to debate in his own party. As the departing treasurer Joe Hockey demonstrated in Hansard on 21 October 2015 at Page 11952 when he appeared to be agreeing with an element in Labor’s draft affordable housing policy:
In an effort to paper over Turnbull Government unwillingness to look taxation inequities squarely in the eye, Liberal and Nationals politicians are apparently blaming ordinary Australians and their supposedly shaky levels of confidence, if The Saturday Paper of 30 April 2016 is any indication:
Favouring this less than 9 per cent, during a federal government term which saw first Abbott then Turnbull rip into the fabric of health, education and welfare safety nets protecting over 23 million people because tax revenue is not keeping pace with government spending, is mindlessly destructive politics.
A fairer approach to taxation concessions - particularly those on self-managed superannuation funds, investments and capital gains realized - which does not encourage aggressive tax minimisation/avoidance at the expense of the common good is not the bogeyman vested interests are making out.