Hockey repeats negative gearing rents myth

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By Leith van Onselen

Treasurer Joe Hockey has once again all but repeated the tired myth that the temporary abolition of negative gearing between 1985 and 1987 drove-up rents. From The AFR:

Mr Hockey said negative gearing on housing was “part of the conversation” but played down one argument against the popular tax concession, saying the commonwealth could not ignore rent increases just because they only happened in Sydney…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.