paulry

I reckon the only way they could do it without a backlash would be to phase it out over several years.

jad n rich

If on Tuesday, the debt levy, increased petrol excise, ( which will be passed on in every sector ) and the already approved ( but forgotten about ) increase to the medicare levy, plus the (much needed though! ) cuts to family benefits, all go through. Right at the same time, electricty and car registration go up again. Plus other cuts not confimred yet??

Too much at the same time, wallets close, jobs go, the economy is going to slammed into backward mode very quickly.

I noticed it already, we are looking for a small investment property in QLD for one of the boys, good stuff around the low $300,000 was going under contract within hours of hitting the market. This week we have agents ringing us daily to see if we are making an offer.

Beoz

The point is it should be a tax break that should be removed. It is a tax break worth 13.2 billion, 13.2 billion that could be spent more wisely. If it was removed it would manipulate the market, and probably negatively for a while whilst investors sell up. But so what. That's 13.2 billion used more fairly.

paulry

People have it the wrong way around. NG manipulates the market. Removing it will help restore free market equilibrium. After dumping NG, the first time homebuyers grant needs to go followed soon afterwards by the ditching of stamp duty

Beoz

All true, but if the ditched stamp, they would replace it with a GST. Stamp would be more cost effective for the buyer

paulry

I get your point. I'm inclined to say that second hand goods should be GST exempt but that would stifle new property builds. Saying that, property developers here make shedfuls of money - I'm sure they would absorb that "hit".

Beoz

So do banks, so do miners, not really fair to the developers. I'd say keep stamp, to keep the money flowing in.

I think its a real shame pollies don't even raise NG as a possible benefit cut. Pure selfishness as they all have investment properties. At 13.2 bill, it could put a significant save in the govt coffers

arkon

Thats only about $44,000 per australian tax payer, and there was me worrying...

Swerv-o

Stamp duty has many times been identified as an 'inefficient' tax, and in theory was to have been phased out when the GST was introduced, as the GST was to be the funding model for the states.

The greedy states, however, love spending our money, so they decided to retain stamp duty following the introduction of the GST.

I suspect that for it to be phased out, we would end up with a state based sales tax, like there is in the US.


S

Beoz

Just phase out the states. Waste of money. Everything done at federal and local levels.

Swerv-o

Oh, without question. The States are a huge drain on resources, and just seem to be money sinks.


S

knockoff nige

I don't understand the thinking around people under 30 having to wait 6 months before they are entitled to unemployment benefits. Plenty of single income people under 30 who have families that can suddenly become unemployed. What are they to do?

Swerv-o

That's evidently designed to push young people towards crime I would have thought.


S

knockoff nige

Ah, fits nicely with the NSW policy of putting everyone in the casino from 3am to mix with organised crime. They are aiding the head hunters.

Swerv-o

And don't forget forcing young people to move to find work. Of course, as we all know, moving is completely free and doesn't come with any associated costs whatsoever, so young people will be completely able to move around the country for work.

They won't need money for transportation, moving costs, leasing deposits etc - that's all completely free. What a brilliant solution!


S