Actually my suggestion is an alternative to removing negative gearing all together.

My suggestion is to remove negative gearing but keep it for only new housing for all properties who purchased after new legislation. Since 92% of all loans go to existing stock doing nothing to add to existing stock of supply.

Also all existing property can continue to claim neg gearing unless they sell, then the property no longer can be utilized for neg gearing.

This would massively incr supply and reduce prices in an extremely overvalued Aussie market making housing affordable. The existing policy is efficient and assisted to create on of the biggest bubbles in the world. I believe we are 4th on the UBS bubble index.

Of course everyone who owns negative geared property would not like this proposal because there growth option would become redundant and only positve geared properties would prosper.

Cheers