Back then we were told it would help increase rental stock, while at the same time help with wealth distribution to the lower classes by allowing low-income families to invest in property.
And it worked, people on low wages got into the property market, people started to build rental stock, wealth was shared. there was a period during the late 90's and early 2000's where there was more rental tock than renters, causing drastic price drops in rent. I don't recall governments and welfare agencies complaining about that for the investors.
My father was one of those new investors, he was a working-class guy working multiple jobs. Purchased his first rental when I was 10 and had the whole family working to renovate it. The next when I was 13, and I was there again to help restore it for renting. then another when I was 16, and then he built one when I was 18. He did not purchase a new car or go overseas, every spare cent went into building for his retirement.
And now we have governments and other organisations trying to make those people out to be greedy rich people, when all they did was sacrifice and work within the rules that helped build a wealthy and successful country.
However, nothing stands still forever.
Changes to the rules need to be made, many of the current property investors are building portfolios that have dozens of houses. Maybe the government could change the tax rules so that the benefit is for the first few properties, and then stops but changes to a benefit for building a apartment or retirement village