Why negative gearing is Australia's biggest policy failure

The original purpose of negative gearing was to boost the housing supply, but instead it has encouraged speculation and driven up prices. Yet politicians are too scared to tackle it.

It is difficult to find a government policy that has been less successful at meeting its objectives than negative gearing on residential property. But unfortunately that is the nature of housing policy in Australia, where sound policies are ignored in favour of policies that encourage speculation, reduce home ownership and redistribute wealth towards the already affluent.

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