I see merit in the the principal of “non commercial losses”, that losses could be quarantined, carried forward to be used when property investments are profitable / commercial. This would be in keeping with the idea that property is a longer team investment, and less a short term speculative investment that the current market has created. New Zealand has a similar system.
Negative gearing is not isolated to property investment, although this is where many if not most Australian taxpayers will associate the mechanism. The fact is that the measure exists