Rabu, 05 Oktober 2011

Tax forum ends

... but we'll have to wait a little while to see what endures after the delegates go home, the chairs are packed and the data projectors are turned off.

For now, this anecdote from the Herald's Peter Martin serves as a nice ending – the People's Economist, David Koch, propounds an end to negative gearing.

NEGATIVE gearing was already on the nose when ''Kochie'' delivered his verdict.
Property manager Eddie Kutner of Central Equity Ltd had just finished putting the case for the rule that allows investors to write off losses made on rental properties against other income before selling the property and pocketing a capital gain taxed at only half their marginal rate.
It was "a responsible part of providing accommodation, a very defensible proposition".
David Koch, the finance journalist and Sunrise host, was at the summit as a community representative.
"Negative gearing on an unproductive asset? Does it just go on for time immemorial or is it time to actually put some limits on it - to say, OK for the first five years, but if it's not producing an income after that why are you there?
"It's done purely for the attraction of letting the taxman pay half. I'm not saying get rid of it all together, but there's got to be a limit - it just can't go on forever."
Mr Australia had spoken. No one returned to the topic.

Well said Kochie!

Keep an eye on TaxWatch for developments.