The following letter to the editor was sent to the Australian Financial review on the 24th September 2014 regarding “Housing worse with no negative gearing“.
In his maiden speech, Senator Bob Day correctly stated, “if every family had a job and owned a house, the benefits to this nation would be great indeed.”
Seven minutes into his maiden speech, Senator Day outlined his preferred method of balancing the budget by removing the minimum wage, so those employers who cannot afford an extra worker at the minimum rate, can afford one at an even lower rate.
Twenty days later, Bob Day came out to defend the existing negative gearing rules along with Independent Economics and the Housing Industry Association.
Australian jobseekers and first home buyers would do well to keep two facts in mind at the next federal election.
- Of the 400,000 net jobs created over 2011 in Australia, 380,000 were taken by foreign workers.
- For every hundred residential property investors who will secure an extra property this Saturday by outbidding an Australian trying to buy a home, ninety three will buy an existing dwelling with the help of negative gearing as it allows them to deduct their monthly losses against their wage.
If Bob Day has a genuine interest in free markets as could be expected from his connection with the HR Nicholls Society, he would be calling for all the demand boosters and supply restrictions on our housing market to be removed.
Any politician who is not standing to end the 457 visa program and abolish negative gearing is not representing Australian jobseekers or first home buyers.