Labor’s policy to limit negative gearing on a prospective basis has some merits, but it appears to be poorly designed. There should be a limit to the percentage of income people can negatively gear, as it's unethical for people to simply write-off their entire income with the interest expense of many investment properties.
As proposed, Labor's policy won't stop people achieving a write-off of their entire income and it could even provide an undesirable taxation incentive - encouraging people to demolish beautiful old homes, only to be replaced by new multiple-occupant residencies that would be eligible for negative gearing benefits. Although this issue hasn't been raised as a concern by Kooyong citizens, I will suggest certain changes to this legislation.
Labor’s proposed changes to capital gain tax are also prospective and will, in effect, treat all sources of income in a similar way. I will not reject these as Kooyong citizens don’t seem to be opposing them.