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Housing crash bail out looks unlikely; Morrison mentions the s word. Promoting savings!
Topic Started: 23 Sep 2015, 07:13 PM (1,289 Views)
Ex BP Golly
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http://mobile.abc.net.au/news/2015-09-23/government-says-they-have-a-spending-problem/6798110

Treasurer Scott Morrison says Federal Government has 'spending problem'; expenditure the same as during GFC

New Treasurer Scott Morrison has given a strong indication the Federal Government will be making more spending cuts in an effort to return the budget to surplus.

Flanked by Finance Minister Mathias Cormann in his first press conference as Treasurer, Mr Morrison declared "we have a spending problem, not a revenue problem".....

"It's a critical part of our plans to provide real opportunities for Australians who want to work, save and invest."

He repeated the phrase "work, save and invest" numerous times throughout the press conference......

Ends quote.

I'm pretty certain this libs aren't worried about aspirational working class debt leveraging 'investors' who think buying a home is investing.

Is this the time savers will be rewarded?

Pop a nice wine Herbie!
Edited by Ex BP Golly, 23 Sep 2015, 07:14 PM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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createdby
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As I stated before, most boomers have their wealth in housing (left eye). Their retirement in super (right eye).

They'll be fucked in the left and right eye when both housing and stock market crashes.

Of course, Glen will try to lube up the dry boomer asshole with ZIRP or QE, but the lube will dry up quickly.

Gen X and Gen Y will save the dry ass-fucking for last when they refuse to bail out boomers with deficit-bloating reinstatement of generous government pension.
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Poontang
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http://www.afr.com/news/special-reports/afr-national-policy-series/treasurer-scott-morrison-wants-to-unlock-retirees-home-wealth-20150922-gjsrw7


Quote:
 
New Treasurer Scott Morrison will ditch all international commitments and dedicate himself towards convincing ordinary people of the need for tax reform, which will include incentives to encourage retirees to unlock and spend the billions of dollars locked up in their homes and other assets.

In an interview with The Australian Financial Review, Mr Morrison indicated the government under Tony Abbott had failed to explain to voters why changes to the tax system were needed. He said the reform cause now needed retail politics not another expert tax report.

"There's been lots of bright shiny documents over the last five or so years and they're all very thick and they end up being too often doorstops," he said.

"I don't want what I do on tax to be like that and I know that the only way that these things can be successful is if you engage people and their appetite for the things tax reforms will deliver.

"As a government what we need to do more of in the months ahead is talk more about what lower, simpler, fairer taxes actually delivers people and why that helps them. It's important to go over that ground a lot more than we have."

Mr Morrison suggested that one problem had been Mr Abbott's political style.

"The key change in politics in the last two weeks is that we may well, and hopefully have, seen a shift from that combative phase, into a more optimistic phase. The politics of optimism, I think will more likely drive policy debate," he said.

"To get a discussion around the types of things we've just been talking about, whether it's in tax or whether it's in productivity, competition policy, trade or whatever, then you need to remove some of these shackles that the combative style of politics has placed on things."
Mr Morrison revealed on Wednesday that government spending had blown out to levels not seen since the recession of the early 1990s and he was more interested in cutting that than raising more revenue on a net basis.

He confirmed the government was proceeding with the Tax White Paper process inherited from his predecessor, Joe Hockey, but everything needed to be considered, including superannuation, capital gains tax and negative gearing.

He hinted that the draft tax white paper, known as the green paper, would present options already flagged in submissions about raising the GST, and lowering company and income taxes.

"Anything that helps people work save and invest, anything that helps the economy become more adaptive, and deal with the transition that's taking place and enables it to diversify, I'm interested in all of those ideas."

Mr Morrison injected new life into the tax debate by rekindling ideas he floated early this year as Social Services Minister about unlocking the capital increasingly hoarded by an ageing population.

This would help grow those sectors of the economy that will contribute more to the economy as the resources boom moves to the slower production phase.

"A key part of the response and a focus we are going to have over the next five years and beyond is that we have gone out of the construction phase as Joe would say and into the production phase," he said.

"And that means that other parts of the economy need to take up the slack that has been left behind and that means diversifying, particularly, where we have got opportunities in the services area."

He listed education, tourism, community and health services, all of which had "massive export potential" but also lots of room for domestic growth.

"With an ageing population, under the right settings, we are unlocking the capital of older Australians, then you are creating new markets for those services in Australia," he said.

"We want those areas of the economy that are investing in new services, to be able to grow and we want that investment to pay off, we want people to be enthused about following through about the decisions they want to make."

In February, Mr Morrison flagged an idea, which was floated by the previous Labor government, in which retirees could sell the family home for a smaller property and pocket some or all of the surplus without reducing their eligibility for the pension and other government benefits.

While this would present an upfront cost to the budget, it would unlock billions in disposable income that could also be used to fund community services the aged will increasingly need.
Freeing up capital

"There is a huge amount of capital that is tied up at the moment," Mr Morrison said on Wednesday, and did ot rule out confining the incentives to housing.

"It's big and it's getting bigger."

He said if it could be freed up, it would boost employment, grow services and strengthen the economy.

He declined to state his own views on the tax mix but said "if people are able to work more and be rewarded for that, then that's a good thing."

"Of course I'm aware of what the various individual prescriptions have been and what's been discussed and considered and I think that's a fairly open discussion."

Unlike Mr Hockey and his predecessors, Mr Morrison would not be going overseas for some time for meetings of the G20, the IMF, the World Bank or anything else, so he could stay home and sell tax reform

He would deputise that role to Finance Minister Mathias Cormann and Assistant Treasurer Kelly O'Dwyer and dedicate himself to the budget and the tax white paper.

Australia was chair of the G20 when the Coalition was elected and Mr Hockey had no choice but to assume a prominent international role, which increased his burden.

Mr Morrison declined to commit specifically to this year's budget projections of future above-average growth and a return to surplus by 2010-21, saying all would be revealed in the mid-year budget update which, as usual, would be released in December.

Mr Morrison revealed on Wednesday that government spending had blown out to levels not seen since the recession of the early 1990s and he was more interested in cutting that than raising more revenue on a net basis.

"We have a spending problem, not a revenue problem," he said.

"Expenditure as a percentage of GDP is over 26 per cent. This is not something that we believe is sustainable and there's plenty of people out there who want to raise taxes and have a new idea for every tax every single day of the week.

"I'm interested in talking to people who have ideas how we can get spending under control."

Mr Morrison said he was unhappy that the tax-to-GDP ratio is rising, although it was low by historical standards.

"Our share of taxes to GDP isn't where you want it to be, in the same way that our share of expenditure as a percentage of GDP isn't where we want it to be," he said.

The ratio is currently just over 22 per cent but is forecast to rise to the 23.9 per cent peak reached during the Howard years.



There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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Will
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Ex BP Golly
23 Sep 2015, 07:13 PM
Flanked by Finance Minister Mathias Cormann in his first press conference as Treasurer, Mr Morrison declared "we have a spending problem, not a revenue problem".....

"It's a critical part of our plans to provide real opportunities for Australians who want to work, save and invest."
This is one of the reasons I genuinely like Scott Morrison. This is the truth, all 3 levels of government will have about 430 BILLION to spend this year.

Actually, Joe Hockey had a similar message, but I will tell you what happened to me.

I watched my Medicare levy go from 1.5 to 2 percent. I watched bracket creep grab more of my tax dollars. And then to rub salt in the wounds, I watched everyone on welfare get their payments diligently adjusted to CPI every 6 months. This from someone who said we needed to reward the lifters and not the leaners? This is why Abbot was set to lose the next election.

With the current dialogue from the new leadership, I'm (at this stage) now going to vote for them again. I like what I'm hearing or should I say their lips are moving the right way.
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herbie
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Ex BP Golly
23 Sep 2015, 07:13 PM
Is this the time savers will be rewarded?

Pop a nice wine Herbie!
Savers remain on the nose I think Golly? :re:

But anyway, Morrison does seem to be taking a somewhat sensible approach to it.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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