Ok so I just looked this up in...

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    Ok so I just looked this up in Wikipedia:

    https://en.wikipedia.org/wiki/Negative_gearing
    "The Hawke government's reversion to the earlier system in which property losses could not offset income from labour was unpopular with property investors. These investors claimed this reversion had caused investment in rental accommodation to dry up and rents to rise substantially. This was unsupported by evidence other than localised increases in real rents in both Perth and Sydney, which also had the lowest vacancy rates of all capital cities at the time.[9]"

    and here:
    https://www.abc.net.au/news/2015-05-06/hockey-negative-gearing/6431100
    "Localised impact. Economist Saul Eslake, in a personal submission to a 2013 parliamentary inquiry, said that localised rent increases in Sydney and Perth did not support the argument that negative gearing was the cause. If the abolition of negative gearing had led to a "landlords' strike", "then rents should have risen everywhere (since negative gearing had been available everywhere)," Mr Eslake said.In an August 1987 cabinet submission for the debate on restoring negative gearing, the then treasurer Paul Keating did suggest that the abolition in 1985 had caused investors to leave the rental market, pushing up rents. "The tax reform changes have now been in place for two years, which would appear to be a reasonable period for adjustment to have worked through so that investors may again return to the rental markets," the submission said.However, it also said: "With the notable exception of Sydney, conditions in the residential rental property market are not unusually tight. The evidence suggests that local influences, rather than tax measures, dominate in metropolitan rental markets."

    This article : http://www.switzer.com.au/the-experts/peter-switzer-expert/when-labor-flicks-negative-gearing-will-house-prices-fall/
    which is broadly pro-NG, cites as evidence the investor take-up of NEW BUILDS.

    So you would need to make a more compelling argument for keeping NG on existing builds, as I can't see any good reason for the economy why it should be there.
 
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