NG has been done to death, QE has been done to death.
That Henry report was an interesting document Jimbo.
Henry actually very genuinely saw value in saving from what I could make of it - With him recommending a 40% discount on the tax paid on interest income earned from bank deposits (as best as I recall after all these years).
And with him also seeing acquiring investment property as just one more quite valid and genuine form of saving I guess - With him also recommending the same 40% tax discount on income earned from it as well. (Which is one that would VERY genuinely light some bears up these days I suppose - But thought about a bit rationally just might have certainly served to dis-incentivise NG as well as just maybe ensure rather less leverage in housing markets - Which I imagine he saw as both being good things.)
He also favoured broad based land tax (as I recall).
But recommended that it be implemented on the value of individual properties rather than an investor's total land value holdings.
With me having got the feeling since (after having thought about it all rather more and in the general light of other stuff I've seen since) that one overall intent of that might very well have been to try and encourage more big institutional type investors (industry super funds perhaps that had funds to invest???) into the market - Which would have presumably resulted in a few less of any of those supposedly 'dodgy(?)' highly leveraged 'speculative' and even 'unsophisticated ma and pa' types we read about, being in it. (Tho the latter could still have had exposure to the market through investing in the institutional types that had been encouraged into the industry - Should they choose to have such exposure by buying into those institutional types.)
My overall take on it all was that he was a pretty big grown up boy was 'our' Ken - And working from the unquestionable stance that taxes had to be collected and a rental market was very genuinely required, saw saving as a quite valuable thing to be encouraged (including through the housing market), while also being desirous of limiting risk in the system.
It's a shame the nation couldn't bring itself to adopt rather more of his recommendations than it did - For mine; But that just seems to be the way of things in our particularly brand of democracy at least, with politicking and lobby groups and self interest from lots and lots of different parties (with plenty of associated nastiness) just genuinely tending to outweigh any real sort of balanced sensible nuanced attempts to come up with a bit of 'common sense'.
Oh well, that's just the way of it I suppose - As Tolstoy's Platon may have said "You can lead a horse to water, but you can't make it drink" ...
Hmmm Yeah, while I thought I'd probably recalled correct, felt to check anyway:
"Chapter A: Personal taxation A1. Personal income tax A1–3 Taxation of income from savings Key points
The income from the savings of Australian residents, other than savings invested in owner-occupied housing and superannuation, should continue to be a significant part of the personal income tax base.
The income tax treatment of these household savings would be improved by applying a 40 per cent discount to most interest income, net residential rental property income, capital gains and certain interest expenses. Doing so would provide a more consistent tax outcome for income from bank deposits and bonds, shares, and rental properties, and provide a means of adjusting for the effect of inflation.
A more consistent treatment of household savings would encourage households to seek the best pre-tax return on their savings and to invest their savings in assets that best suit their circumstances and risk-preferences. It would also largely remove the current bias towards negatively geared investment in rental properties and shares and so reduce a major distortion in the rental property market."
What about the fact that back then one wage (Dad) was enough to cover mortgage repayments while (Mum) stayed home and did all the school/house/shopping duties etc.
It was this state of affairs that led to the rise of the women's liberation movement.... Most women were not especially happy with this state of affairs, and the absolute boredom and monotony of their lives when all society would allow them to do was look after kids and keep the house clean and full of food etc.... So you want a return to the 1950s housewife thing as the norm do you?
Quote:
These days BOTH have to work full time and if they have kids the poor kids get thrown into childcare early in the morning and get picked up late, which also has to be payed for.
I know of people paying $90 perday for childcare.....Thats nearly $500 per week.....wtf.
$90/day is cheap.... but you do get 50% of the cost back via the non-means tested Child Care Rebate, up to $7,613 / year per child. 3 days a week is about the sweet spot for this. hence what most people I know do is have one partner shift to part-time work when the kids come (it's what my wife did as well). Also the child-care phase is only a few short years when you have kids - before you know it they are in school.
What about the fact that back then one wage (Dad) was enough to cover mortgage repayments while (Mum) stayed home and did all the school/house/shopping duties etc.
These days BOTH have to work full time and if they have kids the poor kids get thrown into childcare early in the morning and get picked up late, which also has to be payed for.
I know of people paying $90 perday for childcare.....Thats nearly $500 per week.....wtf.
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