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Keating and Negative Gearing

Discussion in 'The Economy' started by JoelVermeer, 20th Feb, 2017.

  1. JoelVermeer

    JoelVermeer Member

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    Schoolboy question here, that I am not quite sure where to post, but here goes…


    I understand that negative gearing was removed for roughly a 2 year period back in the 1980s, by Paul Keating when Treasurer. In fact, I understand it wasn’t removed, just modified so that income against which expenses could be offset was ringfenced to just the income from the geared asset. Happy to stand corrected on the factual details, although it is not important for my question which is:


    Can anyone recall or direct me to a resource which explains what the articulated reason(s), by Keating or anyone else in the Hawke government at the time, as to what was the reason for reversing the change (effectively reinstating things back to how they remain today)?


    I just want to understand what would have made Paul Keating – of all people – take a step forward and then a step back. And also to see what implications this might have for the debate in the present-day context. (My use of the terms “step forward” or “step back” is not in any way meant to imply my support of negative gearing, one way or the other).


    Many thanks to anyone on the forum of the appropriate age and with a good memory.
     
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  2. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Perhaps go through the list of references and external links on the Wikipedia page on Negative Gearing ... there's a lot of information there: Negative gearing - Wikipedia

    I'm not sure whether it specifically answers your questions - but worth a look.

    Here's Malcolm Turnbull's view on the matter: Clearing up some misconceptions about Negative Gearing | Malcolm Turnbull MP

    Personally, I was in high school at this period, so completely unaware of the issues - I only learned about it historically.
     
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  3. twisted strategies

    twisted strategies Well-Known Member

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    JoelVermeer ,

    have you thought of writing to Mr. Keating , himself , he seems to still be very passionate about such matters .
    if you intend to post his reply elsewhere , i would make that fact quite clear to him ( it might even encourage a more expansive answer )

    personally i remember that era , but was a very much ' live for today' person .

    in those days planning for next week was the exception to the norm , for me