Australians are older but not wiser: Growing class of investors who applaud house price increases; Prohibitively high cost of housing is seeing more and more young people rent
Tweet Topic Started: 20 Sep 2013, 10:06 AM (2,616 Views)
Crazy to whom, you a mortgage broker? Some are listening now and they are not 'my' recommendations. They reflect Ken Henry's reforms.
There are always two ways to skin a cat and a silly bit of inter generational baiting is never going to be a serious foundation for policies. You need to look less at the opportunities the last generation had and more at your own generations opportunities or you will end up a bitter old renter. All your grandiose opinions about cheap housing around the corner will turn you into just another whiney old loser in the eyes of the younger generation coming after you.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
"Immigration's contribution to population growth is likely to increase during the next 30 years as the aging of Australia's population leads to deaths catching up with births."
I think GST should be raised, 20% might be a bit too much. I'd suggest 16 or 17% but indeed we need to make sure the income tax is changed to reflect this. Then again it depends on what the population expects from the government. IF they want large infrastructure projects then the tax cuts of 2007 were a step too far. So I'm happy for a little bit of this to be clawed back via GST.
Many of the other reforms suggested seem a bit complicated. Especially with the option to get out of GCT by some subjective reasons.
I'd prefer negative gearing be preferentially applied to new builds. I've suggested time limiting from building investment before, but I'm happy for anything that biases the government subsidy to new builds rather than inflate existing housing stock.
I think GST should be raised, 20% might be a bit too much. I'd suggest 16 or 17% but indeed we need to make sure the income tax is changed to reflect this. Then again it depends on what the population expects from the government. IF they want large infrastructure projects then the tax cuts of 2007 were a step too far. So I'm happy for a little bit of this to be clawed back via GST.
Many of the other reforms suggested seem a bit complicated. Especially with the option to get out of GCT by some subjective reasons.
I'd prefer negative gearing be preferentially applied to new builds. I've suggested time limiting from building investment before, but I'm happy for anything that biases the government subsidy to new builds rather than inflate existing housing stock.
Noted. Perhaps 20% on luxury items like caravans and the like?
The 10 year CGT option has worked quite well in Germany and there is no CGT for investors or the PPOR after 10 years.
NG is dead as the boomers moving into retirement will no longer need it and what the boomers want gone, they get rid of.
I think GST should be raised, 20% might be a bit too much. I'd suggest 16 or 17% but indeed we need to make sure the income tax is changed to reflect this. Then again it depends on what the population expects from the government. IF they want large infrastructure projects then the tax cuts of 2007 were a step too far. So I'm happy for a little bit of this to be clawed back via GST.
Many of the other reforms suggested seem a bit complicated. Especially with the option to get out of GCT by some subjective reasons.
I'd prefer negative gearing be preferentially applied to new builds. I've suggested time limiting from building investment before, but I'm happy for anything that biases the government subsidy to new builds rather than inflate existing housing stock.
Are you a boomer?
This is a chart of life cycle expenditure from the Federal Reserve.
As you can see, expenditure is greatest between 32 and 54, so those between 32 and 54 would pay the greatest portion of their income in GST. Income tends to peak between 45 and 50 also, so for the majority of Boomers, their income has peaked but their expenditures have gone into decline.
By raising GST and lowering income tax, you are shifting the tax burden directly onto Generation X before their income peaks.
I think GST should be raised, 20% might be a bit too much. I'd suggest 16 or 17% but indeed we need to make sure the income tax is changed to reflect this. Then again it depends on what the population expects from the government. IF they want large infrastructure projects then the tax cuts of 2007 were a step too far. So I'm happy for a little bit of this to be clawed back via GST.
Many of the other reforms suggested seem a bit complicated. Especially with the option to get out of GCT by some subjective reasons.
I'd prefer negative gearing be preferentially applied to new builds. I've suggested time limiting from building investment before, but I'm happy for anything that biases the government subsidy to new builds rather than inflate existing housing stock.
GST is on the land and all of the construction cost of a new build. An increase in the GST is an increase in the cost of a new house. Surely people understand that. If the cost of new homes rise then so will the price of an existing house in the same market. It's a competing product.
Do you want the price of houses to rise due to an increase in GST? I see bears pushing for a lift in GST rates at MB as well, and yet they want house prices to fall. A higher GST means higher house prices, not lower house prices.
Any expressed market opinion is my own and is not to be taken as financial advice
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