Talk:Negative gearing (Australia)

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Negative gearing and negative cash-flow are not the same thing[edit]

The intro to this article uses negative gearing and negative cash flow as if they are interchangeable. They are not, because cash flow excludes non cash expenses such as depreciation. It is possible for an investment to be negatively geared and generate positive cash flow. As such, I have edited the article to make this clearer. Marchino61 (talk) 01:30, 20 March 2015 (UTC)[reply]

Suggested change in terminology[edit]

Negative gearing is not "a form of financial leverage". It is an investment structure that allows interest paid on a leveraged investment to be deducted against a persons regular income. — Preceding unsigned comment added by Jamesjansson (talk • contribs) 00:06, 20 April 2015 (UTC)[reply]

Completely inaccurate information/[edit]

The following paragraph:

"In July 1985, the Hawke/Keating government quarantined negative gearing interest expenses (on new transactions), so interest could only be claimed against rental income, not other income. (Any excess could be carried forward for use in later years.) What is less appreciated is that Hawke/Keating introduced negative gearing only six months prior. Previous to their initial decision the Income Tax Assessment Act 1936 (As Amended) had quarantined all property losses from deduction against income from personal exertion (other business or salary and wage income). Any losses incurred in any one year would be accumulated on a register and would only be allowed as a deduction from income from property in succeeding years. In so doing property income and property losses were in one 'bucket' and personal exertion income and losses were in another 'bucket'."

is completely incorrect - in particular the claim that the Hawke/Keating government introduced negative gearing for property only 6 months prior to withdrawing it. For example, the following source - http://www.austlii.edu.au/au/journals/eJTR/2005/4.html, references court ruling related to negative gearing of property as far back as 1967. In fact the ability to do what is termed "negative gearing" with respect to property investment in Australia dates back to the original / current tax act of 1936, and is part of the general principle of pooling an individuals income (and deductions) for Commonwealth taxation assessment.