Kohler's mistakes underline why negative gearing is threatened

There is nothing wrong with offsetting income against costs in the same economic entity. It is not a tax dodge, as Kohler asserts, but the way the tax system works.

If I own two businesses in the same company or trust, one with negative cash flows and the other with positive, then there is no question I can pool my income and my costs and net the two out against each other.

There is no conceptual difference between that and offsetting a loss making business I own in my own name against other income that I earn in my own name. It would be inefficient and unjust not to allow me to pool income and costs just because I own it personally rather than corporately.

Pity the current and future homeowners of Australia when this level of analysis proceeds from one of our best and brightest.