I'll pass, property infestment in Australia is not about intelligence, it's down too when you were born and having an interfering government. Only crime here is that you steal oxygen from worthwhile beings.
you post this crap but don't even believe it yourself
I am the love child of Tony Abbott and Pauline Hanson
you post this crap but don't even believe it yourself
I believe it and so do a growing number of people who are fed up and not falling for the lies. Scary isn't it?
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
I think it's run off with it's tail between it's legs. or is atleast stumped on how to weasel out of it.
I can imagine on the one hand getting rid of me from the forum is very enticing, but it appears to be more than balanced out by performance anxiety.
Why are you so compelled to reply to all my posts? Scared.
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
Ummm ... no. It's still $10B that needs to be funded from another source. It's irrelevant how much property related tax is collected.
The government collects 230B in income taxes. The 10B spent on NG could reduce income tax collection by 4%. I would sure like to pay 4% less in income tax, how about you?
The government also collects 94B in GST. The 10B spent on NG could reduce the GST burden by 10.6%. I would rather pay 10% less GST (which is a regressive tax, i.e. the poor pay more than the rich).
I'm curious however, what is the relationship between tax collected on property and tax spent on property?
Ummm ... no. It's still $10B that needs to be funded from another source. It's irrelevant how much property related tax is collected.
The government collects 230B in income taxes. The 10B spent on NG could reduce income tax collection by 4%. I would sure like to pay 4% less in income tax, how about you?
The government also collects 94B in GST. The 10B spent on NG could reduce the GST burden by 10.6%. I would rather pay 10% less GST (which is a regressive tax, i.e. the poor pay more than the rich).
I'm curious however, what is the relationship between tax collected on property and tax spent on property?
Actually if you look at the most recent figures available (2010/11) the total nett rental income was about -$7.8B. So that's a tax deduction of about $2.3B that otherwise would have to be deferred to later years. Given that a deferred tax deduction is a reduced deduction because of the time value of money, it probably represents an NPV reduction of about $0.5-$1B to the treasury over the case where losses on rental property are quarantined. (Depending on how long it takes to get cash positive on average)
But GST on expenses on rental properties totalled about $1.5B and rates and land taxes totalled another $2.8B.
Seems to me the tax man has done pretty well out the move from public housing (nett cost) to a privatised rental stock (nett positive), and I haven't even considered the huge increase in the proportion of the total housing stock that generates CGT for them every time it turns over.
As a (now) positively-geared investor who had to defer all deductions anyhow (because I have any salary income in oz) I'd welcome quarantining because I reckon it would knock out some of my competition and increase my returns, but I'm pretty sure the govt won't screw too much with a system that works nicely for them.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Ummm ... no. It's still $10B that needs to be funded from another source. It's irrelevant how much property related tax is collected.
yes i agree, why give anyone a refund on anything, the government should just take all our money. that way they will have all the funding they ever need and won't need to do a budget taking into account the nett income they get, nett and gross will be the same!
I am the love child of Tony Abbott and Pauline Hanson
Actually if you look at the most recent figures available (2010/11) the total nett rental income was about -$7.8B. So that's a tax deduction of about $2.3B that otherwise would have to be deferred to later years. Given that a deferred tax deduction is a reduced deduction because of the time value of money, it probably represents an NPV reduction of about $0.5-$1B to the treasury over the case where losses on rental property are quarantined. (Depending on how long it takes to get cash positive on average)
I'm a little confused by your calculations. The NPV of one dollar, right now, is one dollar. If the tax is saved by the investor today, they receive the full value of that dollar today. If it is deferred until they dispose, the NPV decreases, no? That is, if I pay $1B less in tax this year, I can put that $1B into some other investment and earn a return, whereas if I defer the tax credit to sometime in the future (at disposal), I have lost the time value of money. And the inverse applies to the Treasury.
Quote:
But GST on expenses on rental properties totalled about $1.5B and rates and land taxes totalled another $2.8B.
Seems to me the tax man has done pretty well out the move from public housing (nett cost) to a privatised rental stock (nett positive), and I haven't even considered the huge increase in the proportion of the total housing stock that generates CGT for them every time it turns over.
Not just the tax man, but renters as well. I have been earning risk free returns on my cash that I save by renting (ok, sovereign risk, but w/e), while those kind property investors have been taking a loss AND a risk. Once the transition from public to private housing is complete, it wouldn't surprise me if there is some kind of rent control introduced, or at a minimum, the government pulls the props out from under the market they made.
Quote:
As a (now) positively-geared investor who had to defer all deductions anyhow (because I have any salary income in oz) I'd welcome quarantining because I reckon it would knock out some of my competition and increase my returns, but I'm pretty sure the govt won't screw too much with a system that works nicely for them.
Well, here is hoping. I never really had any plans to buy property in Australia anyway, and the longer this government sponsored 'boom' goes on, the cheaper rent will be relative to increases in my income. One day they will probably pull the supports and leave the middle class holding the bag (to mix my metaphors), and it might even be cheaper to buy than rent, so I will do the economically rational thing. If I am still here, that is.
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