Prosper Australia

Speculators rub their hands with glee at prospect of further tax write offs

“Today’s interest rate increases have rewarded the wrong people. Speculators will today be able to increase the amount of tax they can write off” said Prosper Australia spokesman Karl Fitzgerald.

“The Reserve Bank’s policy tool box is empty when it comes to housing affordability. Higher interest rates hurt first home owners but reward speculators.”

“Today’s Interest Rate increase will see $300m handed to speculators in the form of extra negative gearing tax write offs”

“Higher interest rates allow a privileged few greater tax write offs via negative gearing.”

“Why are those who already own the planet encouraged to own even more?”

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Letter to the Age

Dear Sir,

So let me get this right. Messrs Howard and Costello say the economy has been going so well that the RBA intervened by increasing interest rates to slow it down again? But why should anyone want slow down a healthy economy? Did the government have it going too well? Can Mr Costello explain where the line is between going well and going too well?

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