Budget Predictions
Apr 30th 2013, 9:47 pm
#1
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Budget Predictions
Negative Gearing gone?
- Implications on housing market
Removal of 50% allowance for capital gains tax or reduction to 30%/40%?
Increase in land tax?
GST 15%?
Income tax rise?
Payroll tax drop?
Corporation tax?
Cigarettes/Booze?
Gambling?
Your thoughts comments?
- Implications on housing market
Removal of 50% allowance for capital gains tax or reduction to 30%/40%?
Increase in land tax?
GST 15%?
Income tax rise?
Payroll tax drop?
Corporation tax?
Cigarettes/Booze?
Gambling?
Your thoughts comments?
Apr 30th 2013, 11:00 pm
#2
Victorian Evangelist
Joined: Sep 2005
Location: Melbourne, by the beach, living the dream.
Posts: 7,704
Re: Budget Predictions
They did it before in the 1980s with the same result.
If negative gearing was removed rents would go up around 30 - 50%.
Capital gains tax and inheritance tax are in the firing line I reckon BUT watch this space as we may well be about to get a change of government....
BB
Apr 30th 2013, 11:18 pm
#3
Lost in BE Cyberspace
Joined: Mar 2008
Location: Sydney, NSW
Posts: 7,580
Re: Budget Predictions
Increase in medicare levy
more meddling with super
reduction in tax benefits for those who take out private medical insurance
delaying the phasing out of taxes that the introduction of GST was supposed to replace
new levy to pay for disability support
general grabbing of money from non-labour supporters
more meddling with super
reduction in tax benefits for those who take out private medical insurance
delaying the phasing out of taxes that the introduction of GST was supposed to replace
new levy to pay for disability support
general grabbing of money from non-labour supporters
Apr 30th 2013, 11:22 pm
#4
snɐןɔ ʎʇıuɐs
Joined: Nov 2006
Posts: 6,558
Re: Budget Predictions
Negative Gearing gone?
- Implications on housing market - unlikely in an election year, what with the impact on renters
Removal of 50% allowance for capital gains tax or reduction to 30%/40%? - possible, but hardly a positive policy for entrepreneurship
Increase in land tax? - more likely
GST 15%? - when aus retailing is already down for the count?
Income tax rise? - possible, particularly on the higher earnings
Payroll tax drop? - unlikely
Corporation tax? - again, hardly supportive of entrepreneurship
Cigarettes/Booze? - possible, but frankly I think they are on the ragged edge of how much they can overcharge for booze.
Gambling? - very likely
- Implications on housing market
- unlikely in an election year, what with the impact on rentersRemoval of 50% allowance for capital gains tax or reduction to 30%/40%? - possible, but hardly a positive policy for entrepreneurship
Increase in land tax? - more likely
GST 15%? - when aus retailing is already down for the count?
Income tax rise? - possible, particularly on the higher earnings
Payroll tax drop? - unlikely
Corporation tax? - again, hardly supportive of entrepreneurship
Cigarettes/Booze? - possible, but frankly I think they are on the ragged edge of how much they can overcharge for booze.
Gambling? - very likely
I also think they will need to push/support entrepreneurship (rather than attack it) since the resources is going to turn down and they need something to fill the gap (eg reverse dutch disease).
Oh, and end tax free for religions (she's an atheist remember...)
May 1st 2013, 12:51 am
#5
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Re: Budget Predictions
It's a given that they're out in September, so that often affects policy choices, particularly budget issues. Brown is a good example of that in the UK with his borrowing. With only four months left in power before what will probably be at least six years of Abbott, they could do anything without fear of the consequences. It's very rare for an Australian Government to last only one term, so my prediction is the Liberal Party (Coalition, I should say) will be in power until at least 2019, maybe even 2022. Bill Shorten could be Opposition Leader for a long old time.
Last edited by Zen10; May 1st 2013 at 12:56 am.
May 1st 2013, 2:59 am
#6
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Re: Budget Predictions
I can't imagine labour removing negative gearing again as the net effect is then that rents go up to the levels seen in other countries which has a direct impact on the tenants, many of whom are people who can't afford to buy a house, and probably labour voters......
They did it before in the 1980s with the same result.
If negative gearing was removed rents would go up around 30 - 50%.
Capital gains tax and inheritance tax are in the firing line I reckon BUT watch this space as we may well be about to get a change of government....
BB
They did it before in the 1980s with the same result.
If negative gearing was removed rents would go up around 30 - 50%.
Capital gains tax and inheritance tax are in the firing line I reckon BUT watch this space as we may well be about to get a change of government....
BB
What makes you say that? You mean in the short term or in September?
S
May 1st 2013, 4:00 am
#7
Victorian Evangelist
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Posts: 7,704
May 1st 2013, 4:02 am
#8
has lost The Game
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May 1st 2013, 9:40 am
#9
Anything,Anytime,Anywhere
Joined: Jan 2004
Location: The Magic Roundabout
Posts: 8,141
Re: Budget Predictions
It's a given that they're out in September, so that often affects policy choices, particularly budget issues. Brown is a good example of that in the UK with his borrowing. With only four months left in power before what will probably be at least six years of Abbott, they could do anything without fear of the consequences. It's very rare for an Australian Government to last only one term, so my prediction is the Liberal Party (Coalition, I should say) will be in power until at least 2019, maybe even 2022. Bill Shorten could be Opposition Leader for a long old time.
May 1st 2013, 10:55 am
#10
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Posts: 3,396
Re: Budget Predictions
More like reducing the current $1,000 GST-free allowance on imports. It wouldn't stop people buying from overseas as many things will still be cheaper (considerably in some cases) but the government will get more money - and more closely match other countries with a lower allowance.
May 1st 2013, 11:01 am
#11
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Re: Budget Predictions
More like reducing the current $1,000 GST-free allowance on imports. It wouldn't stop people buying from overseas as many things will still be cheaper (considerably in some cases) but the government will get more money - and more closely match other countries with a lower allowance.
I thought the productivity commission identified that it would cost as muct to administer as they would make from it?
Surely they need income - not break even schemes...
S
May 1st 2013, 11:03 am
#12
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Re: Budget Predictions
Probably depends on how it is operated - e.g. if it's collected at time of purchase (with agreements with certain large companies, that are already charging/adding VAT for EU-based customers) or if it is charged once the goods have arrived in the country via Customs.
May 1st 2013, 11:09 am
#13
Lost in BE Cyberspace
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Posts: 14,040
Re: Budget Predictions
I can't imagine labour removing negative gearing again as the net effect is then that rents go up to the levels seen in other countries which has a direct impact on the tenants, many of whom are people who can't afford to buy a house, and probably labour voters......
They did it before in the 1980s with the same result.
They did it before in the 1980s with the same result.
We'd certainly see some unsettling.
May 1st 2013, 2:11 pm
#14
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Joined: Dec 2008
Posts: 3,396
Re: Budget Predictions
I can't imagine labour removing negative gearing again as the net effect is then that rents go up to the levels seen in other countries which has a direct impact on the tenants, many of whom are people who can't afford to buy a house, and probably labour voters......
They did it before in the 1980s with the same result.
They did it before in the 1980s with the same result.
The change in negative gearing in 1985 was for losses to only be claimed against rental income rather than other income.
May 1st 2013, 2:14 pm
#15
has lost The Game
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Location: Chippendale, Sydney
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Re: Budget Predictions
From what I've read, the only capital cities where rents did noticeably rise were Sydney and Perth, and there were very low vacancy rates at the time in both those cities. No other capital cities saw such rises, which would suggest that the change in negative gearing (it wasn't actually removal of) didn't effect rents in the way suggested.
The change in negative gearing in 1985 was for losses to only be claimed against rental income rather than other income.
The change in negative gearing in 1985 was for losses to only be claimed against rental income rather than other income.
Yes, and recent studies have found that housing is still un-affordable, even with negative gearing...
S