I think it was important that the GST exempted basic foodstuffs (not junk food). Recipients of benefits couldn’t have afforded an ongoing 10% increase on everything. The prices of food have probably gone up 10% since then anyway. Inflation (CPI) after the GST was 6%!
kay henry
I think its important that we dont vote for any of the slime bags.
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Originally posted by Jerzy Balowski:Little johnny is the one who gave us the non core promise of never ever a GST. This is an insidious tax that affects EVERY Australian, unlike this revamp of NSW Stamp Duty.
Jerzy
The difference is that we voted the Coalition in on the GST, we were all fully aware of the fact that it was going to be brought in. If the majority of people were not in favour of it at the time, all it needed was a stroke of the pen.
This money grab by Bob Carr is not something we can vote on. It is a very sly move.
‘Eat rich food, barbeque a yuppie’ [greedy]
Thats why compulsory voting should be abolished, let the nong nongs stay at home whilst the bright sparks vote.
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Originally posted by wayneL:Originally posted by Jerzy Balowski:…and you have the Tories in Canberra to thank for that.
LOL!!!!! (SLAP!)
Wake up and smell the coffee! I rather think it was a bipartisan effort.
So, what you are saying Wayne, is that it was the federal ALP opposition, that instigated the GST ??? Or was it the ALP state governments ???
Oh bugger it, it had to be the Labor Party’s fault somehow eh ??? No way could it have been that nice man, Honest John.
Originally posted by Rugbyfan:Originally posted by Jerzy Balowski:Little johnny is the one who gave us the non core promise of never ever a GST. This is an insidious tax that affects EVERY Australian, unlike this revamp of NSW Stamp Duty.
Jerzy
The difference is that we voted the Coalition in on the GST, we were all fully aware of the fact that it was going to be brought in. If the majority of people were not in favour of it at the time, all it needed was a stroke of the pen.
This money grab by Bob Carr is not something we can vote on. It is a very sly move.
‘Eat rich food, barbeque a yuppie’ [greedy]
You’re only half right Rah Rah.
No one was completely certain that the GST was going to be brought in, as it still had to pass the Senate. Sure, the Tories, went into the 1998 election, proposing to implement the GST, but they only did so, with the comfort of a huge majority, courtesy of the 1996 election. This was the only scenario that such a rotten piece of taxation reform, could have been proposed by any government. Remember John Hewson ? He proposed a GST, and lost the unlosable election, complete with 15% interest rates, and a very unpopular PM.
And of course, what happened in 1998, is that Howard came within a bees knob of becoming a one term PM. It is common knowledge that this government actually received less than 50% of the vote ! So it seems that the majority of the people actually were not in favour of a GST, and it is only due to the vagaries of our voting system that brought the Howard government a second term.As for the implementation of the GST, you can thank the treacherous Meg Lees, for that. I’m not nearly as dirty on the Tories for actually delivering what they had said they would, as I am on the then Leader of the Democrats, who most thought, would keep the bastards honest. Well, Meg Lee’s is now an independant, the Democrats are on life support because of this, we have a GST that affects every Australian, and the ones who must feel the most deceived are the people who could not bring themselves to vote for the GST, and could not bring themselves to vote for the ALP, therefore, casting their vote to the Dems, in the false hope that they would save the day.
As for this new Stamp Duty overhall, of course it stinks. Bob Carr has shifted the goal posts. But do you really think that if this policy was in front of the people of NSW at the last election, that it would have cost the ALP government ??
How many votes do you think this would have cost Bob Carr ? All the voting public would have seen, was a bunch of property investors crying poor. Just this scenario, would have guaranteed more votes for the ALP, than it would have cost.Ultimately, I strongly disagree with this Stamp Duty overhall, as a property investor. But lets get things into perspective. There are far worse things to be concerned about in life, and property investing. After the dust settles, I’m certain that there are going to be as many (if not more) positives come out of this than negatives. The same can not be said about the GST.
This all began with the Romans (taxes) – what’s happened has happened, its all a plan to exploit the little people (the workers), question is what next???
[email protected] [angry2]
It is common knowledge that this government actually received less than 50% of the vote ! So it seems that the majority of the people actually were not in favour of a GST, and it is only due to the vagaries of our voting system that brought the Howard government a second term.Ahhhhh Jerzy, selective memory is a common afliction isn’t it. Bob Carr won the last election fair and square, a clear majority. This wasn’t the case at the election before was it?
He got in on preferences only and actually received less than 50% of the vote.
I agree with mysta – let the sheep stay at home and let the people who have a clue on whats good and bad for the country vote.
‘Eat rich food, barbeque a yuppie’ [greedy]
you mean once they have run out of the bottom of the ladder incomes they may have to start to look at the top 10%? heheheh I doubt it.
I have some dockets from my parents business that dates back to 1970’s,. must have another look at what a loaf of bread cost, dad and I used to deliver it, wrapped in white papper, unsliced, best part was eating the middle out of a soft warm loaf of bread…never mind indigestion!
I recall a frozen yoghurt, orange actually, from the 4 square shop (most expensive) cost me 18 cents! I only got 20cents pocket money.
My mum sometimes gave us 10 cents ofr lunch at school, it bought me hot chips with vinegar from the local fish n chip shop in the arvo! running down katoomba street eating hot chips on a cold winters day…ahh YUM!
a can ok coke, which we were not allowed, better still a can of cottees lemon drink (like solo) was 15 cents now the average take away can is $1.50 and a few misley chips from $1.50 to 2.50, comparatively I dont think my wages went up like that!
the gap widens…..
Elves
” a blind man may see what a sighted man may not”
[thumbsdownanim |How many votes do you think this would have cost Bob Carr ? All the voting public would have seen, was a bunch of property investors crying poor.|
Jerzy,
Don’t let your political persuasions get in the way of fairness. 40% of all NSW property buyers are investors – a significant amount I would say – compared with only 11% first home buyers – and a fair percentage of these are buyers of property over $500000 in NSW, so exempt from any gain from the new deal.
I agree completely with Steve Mc – this new stamp duty tax is fundamentally wrong. I have paid this Government a lot of money in stamp duty over the last two years buying three investment properties and a new ppor. I am not rich – I bought the investments from equity in my home – as a long term strategy for retirement. These properties are only just viable and to think I’ll have to pay more tax when I do eventually sell is disgusting. What has the Govt done with the huge surplus of money from stamp duty during the boom last few years? I have no confidence that they will do any better with this “extra” tax. Having been told that baby boomers will have to fund their own retirement, what incentive is this?I will never vote labour again – and this includes the Federal Govt – who do have elections this year – maybe if we could put some pressure on them, Bob Carr may think twice.
Make your voices heard – don’t let them get away with it!!! ENOUGH IS ENOUGH !!!Tegan
I suggest people need to look at what their objective in holding their property is instead of being panicked into a rush disposal because of fear of taxes.
Looking at Dr Phods’ examples:
Land Tax. $360.00. Tax deduction at 48.5c/$ $174.60, net payable $185.40.
Sale at $400,000 of prop purch’d for $300,000. $8,000 selling costs plus $9000 exit duty. Current net gain $92,000 less 24.25% tax = $69,690
With new tax – net gain $81,000 less 24.25% tax = $61,357.50. However, if you sell and reinvest, by the time you’ve paid reinvestment costs you’ll have say $350,000 to reinvest, may be less. However, if you keep the property and don’t sell you can refinance using the increased equity and invest. The property would need to fall by at least 10% (bearing in mind the 2.25% exit duty) before you were better off selling. If the property fell 10%, the cause of the fall isn’t simply going to be exit stamp duty and if NSW property falls that much some money that would have diverted to interstate property will flow back to NSW lessening the demand and therefore having a price effect on interstate property.Tax is like development, we’re all in favour as long as it doesn’t affect us.
I, for one, am looking forward to some good buying opportunities in NSW
crj
Call me cynical …I’d doubt whether this additional and politically driven tax on IP investing in NSW increasing the state gov grab in an inflated and unstable market has been thought through by the NSW Gov, certainly not in a nation wide context.
In my opinion, this is a major tinkering which will have far reaching consequences of which no one can be sure…there are too many varables, both within the state, and ramifications through the rest of Australia It adds to the uncertainly for IP investing in NSW, and places NSW IP investors as conspicuously set upon and dissadvantaged in a national context. It is why QLDs Peter Beattie is rubbing his hands with glee at the prospects of more NSW investor/AUS super fund money heading his way. Steve Bracks is similarly impressed.
I’m expecting a backflip (adjustment) once the Mr Carr witnesses that the ‘horse has bolted’. The question is how long will it take him to wise up whilst attempting to minimise fallout and save face?
If I were a NSW investor, I’d hold, allowing prices to perhaps even increase if others did so en mass, allow the pollies to get the greed/pride out of their system, and take additional profit once any backflip happens.
The danger is if an elected Latham attempts this on a national level…
… my 2c worth
I agree with mysta – let the sheep stay at home and let the people who have a clue on whats good and bad for the country vote.
Too right Rah Rah !!! I also agree, as long as you lump in with the sheep, those who only give a stuff about themselves.
|How many votes do you think this would have cost Bob Carr ? All the voting public would have seen, was a bunch of property investors crying poor.|
Jerzy,
Don’t let your political persuasions get in the way of fairness.40% of all NSW property buyers are investors – a significant amount I would say – compared with only 11% first home buyers – and a fair percentage of these are buyers of property over $500000 in NSW, so exempt from any gain from the new deal.
I agree completely with Steve Mc – this new stamp duty tax is fundamentally wrong. I have paid this Government a lot of money in stamp duty over the last two years buying three investment properties and a new ppor. I am not rich – I bought the investments from equity in my home – as a long term strategy for retirement. These properties are only just viable and to think I’ll have to pay more tax when I do eventually sell is disgusting. What has the Govt done with the huge surplus of money from stamp duty during the boom last few years? I have no confidence that they will do any better with this “extra” tax. Having been told that baby boomers will have to fund their own retirement, what incentive is this?I will never vote labour again – and this includes the Federal Govt – who do have elections this year – maybe if we could put some pressure on them, Bob Carr may think twice.
Make your voices heard – don’t let them get away with it!!! ENOUGH IS ENOUGH !!!Tegan
Please read slowly Tegan.
Nowhere did I state that I agree with the new stamp duty rules !!!
Nowhere did I state my political persuasions, unlike yourself!!!
If you had read my complete reply, rather than the first couple of paragraphs, you would have seen that I had given both major parties a serve. And for good measure even the Democrats. What part of that is being misconstrued to somehow indicate to yourself who I support politically ?
It seems that I have upset some members of the Liberal Party Glee Club, as they are the only ones who seem to go feral at the mere mention of anything negative towards their political heroes.
Whose political persuasion is being dragged to the surface then, eh ??I also agree with Steve, and (almost) everyone else in this forum regarding this topic. We are taxed to the hilt. These Stamp Duty changes are wrong, as is the GST, and there is sweet bugger all, anything you or I can do about it.
To quote Dennis Denuto, as others in this forum have, the vibe of my reply was to get things into perspective, and wait for the dust to settle, then see what inevitable opportunities arise from these changes. Dont look at problems find solutions. If that is bad advice, then dont take it.
P.S. If you choose not to take that advice, and rush off to quickly unload any of your properties, please let me know, as I’m always on the lookout for a bargain.
I started voting for the Greens about 6 years ago, it was as far away from the Lab’s & the Lib’s as i could get. I suggest we should all do the same as these guys are not worthy of our hearts and minds.
The question that everyone has to ask themselves is this, “can you look into the mirror and say that I trust either parties”?
Try it when you have nothing to do.
Why do we keep putting them in? They act like they deserve it, like its their God given right to retire on a million a year!
They suck………
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….”
Originally posted by mysta:I started voting for the Greens about 6 years ago, it was as far away from the Lab’s & the Lib’s as i could get. I suggest we should all do the same as these guys are not worthy of our hearts and minds.
Warning![offtopic]
In principle this is a good idea. But, notwithstanding their stand on environmental issues, which are generally meritorious, these guys are about as far left as you can get without being overtly Marxist.
It would be nice if there were someone closer to the centre of politics…. for the moment the big X gets my vote.
[
It would be nice if there were someone closer to the centre of politics…. for the moment the big X gets my vote.Maybe that should be our new political party against these new taxes. ‘X’, I reckon we could get a few votes if the ballot papers had a party just simply called ‘X’.
What do you reckon?
‘Eat rich food, barbeque a yuppie’ [greedy]
Jerzy, Sorry if I misconstrued your intentions. I’ve been a swinging voter in the past and have no leanings one way or the other – except for now -as I stated Labour stinks – their mismangement of our money results in a sneaky tax being introduced.
I agree with Rugbyfan – new party called X – would get a lot of donkey votes anyway.Jerzy, as I stated, I bought the ips as long term investments -so won’t be giving you any bargains!
As for not being able to do anything about the new stamp duty tax, we can join the Propert Owners Assoc, write to newspapers, politians, make our voices heard. Anyone got any other ideas? [glum2][glum2]
TeganMy 22c worth. (11 times more than usual!)
Price will always come down to supply and demand. Carrs new tax will increase supply (in my neighbourhood, for sale signs have popped up everywhere, people want to sell prior to july) and demand will have to drop (investing today is a totally different climate from 12 months, or even one month ago). when supply increases, and demand decreases, prices must fall. Yes, there are some who can wait (almost forever) to sell, but for most, a price lower or much lower than expected can probably be expected.
I think that carrs tax will screw him and nsw for a number of reasons.
Firstly, the moronic fools in treasury have counted up how many houses were sold in the last 12 months (in a red hot frenzy), and have then assumed that the same will be sold again in the next 12 months, and a 2.25% bonanza windfall will go to the govt.
But, the new exit stamp duty (and land tax) will fundamentally change the way that investments will be made. Buy and hold will become a lot more promising than buynrenonsell and buyndevelopnsell.
Those of you following my other threads may know that I have been very keen on doing a duplex development, which if successful, would keep doing more and more. Found a site, perfect, and the numbers crunch quite well. Enter car, enter a different climate, particularly in 2-3 years time. Enter skepticism, and my plans are on the outer, and I will either i) sit on the fence (like most of nsw) or ii) go to qld and try something.
You see, carr has just lost the 18K in stamp duty that I was happy to pay him just a month ago, and the turnover of properties will plummet. I think that is the reason for the increase in the land tax, to slug all property owners, those buy and hold strategies I was referring to before.
So, plateau or correction, or a plummet? Hard to say, but with yields at an all time low, units an dtown houses being almost untenantable, it will be an interesting ride in the years to come.
And as for the ‘opportunity is just around the corner’ people, I will be waiting for the prices to drop, then stabilise, then slightly increase again before buying. That could be a couple of months, or a few years
Originally posted by wrappack:My 22c worth. (11 times more than usual!)
Price will always come down to supply and demand. Carrs new tax will increase supply (in my neighbourhood, for sale signs have popped up everywhere, people want to sell prior to july) and demand will have to drop (investing today is a totally different climate from 12 months, or even one month ago). when supply increases, and demand decreases, prices must fall. Yes, there are some who can wait (almost forever) to sell, but for most, a price lower or much lower than expected can probably be expected.
I think that carrs tax will screw him and nsw for a number of reasons.
Firstly, the moronic fools in treasury have counted up how many houses were sold in the last 12 months (in a red hot frenzy), and have then assumed that the same will be sold again in the next 12 months, and a 2.25% bonanza windfall will go to the govt.
But, the new exit stamp duty (and land tax) will fundamentally change the way that investments will be made. Buy and hold will become a lot more promising than buynrenonsell and buyndevelopnsell.
Those of you following my other threads may know that I have been very keen on doing a duplex development, which if successful, would keep doing more and more. Found a site, perfect, and the numbers crunch quite well. Enter car, enter a different climate, particularly in 2-3 years time. Enter skepticism, and my plans are on the outer, and I will either i) sit on the fence (like most of nsw) or ii) go to qld and try something.
You see, carr has just lost the 18K in stamp duty that I was happy to pay him just a month ago, and the turnover of properties will plummet. I think that is the reason for the increase in the land tax, to slug all property owners, those buy and hold strategies I was referring to before.
So, plateau or correction, or a plummet? Hard to say, but with yields at an all time low, units an dtown houses being almost untenantable, it will be an interesting ride in the years to come.
And as for the ‘opportunity is just around the corner’ people, I will be waiting for the prices to drop, then stabilise, then slightly increase again before buying. That could be a couple of months, or a few years
What do we get for 44 cents? Just kidding, I like your logic[cigar]
“Dont be looking in your back yard for a four leaf clover when the opportunity of a lifetime could be knocking on your front door….” “Even though you may be on the right track, you can still get run over if you sit there long enough”
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