I saw this interesting articles from Hills News the other day called "Taxing dilemma" by Michael McNamara. I found an online PDF version from their web site and like to share it with you here:
Quoted a few interesting ones from the article as below:
"IN THE US, interest repayments were tax deductible for property owners only. This gave them a higher advantage than investors."
"In Australia, it was the exact opposite. Only investors were allowed to claim the interest component of their mortgage repayments, which it was argued gave them an unfair advantage."
"Property owners were burdened because they used their after-tax income to service
repayments. This means that interest rate hikes will always hurt owner-occupiers more."
So our tax system is indeed not quite fair...If we adopt that here in Australia, it will help with the house affordability problem, but it definitely will drive up house prices...