Negative gearing is a controversial political issue in Australia, and was a major issue during the 2016 federal election, during which the Labor Party proposed restricting (but not eliminating) negative gearing and to halve the capital gains tax discount to 25% [REF].
In 1983, the Victorian Deputy Commissioner of Taxation briefly denied Victorian property investors the deduction for interest in excess of the rental income, so losses could not be transferred nor moved to a future tax year.