<P> i . ability to negatively gear an investment property when there is little prospect of the property being cash - flow positive for many years; </P> <P> ii . the benefit that investors receive by virtue of the fact that when property depreciation allowances are "clawed back" through the capital gains tax, the rate of tax is lower than the rate that applied when depreciation was allowed in the first place . </P> <P> iii . the general treatment of property depreciation, including the ability to claim depreciation on loss - making investments . </P> <P> In 2008, the report of the Senate Select Committee on Housing Affordability in Australia echoed the findings of the 2004 Productivity Commission report . One recommendation to the enquiry suggested that negative gearing should be capped: "There should not be unlimited access . Millionaires and billionaires should not be able to access it, and you should not be able to access it on your 20th investment property . There should be limits to it ." </P>

When was negative gearing first introduced in australia