New Depreciation Tax Incentive for Landlords – So is negative gearing also safe?

The just-announced 4% tax depreciation rate for new build-to-rent properties suggests that the Federal Labor Government has finally got the economics right when it comes to tax incentives for rental property owners.

Put simply, isn’t it blindingly obvious that making rental property ownership more attractive is the best way to increase supply and reduce rents?

Hopefully, that also signals the end of the Left Wing’s class warfare calls for the abolition of negative gearing of investment properties. Abolish or restrict negative gearing and you decrease supply and increase rents – it’s that simple. Not the way to solve a housing crisis, surely?