Hi!
Please use this thread to make posts about the Federal Budget, either generally or else after reading the May 2005 Insider.
Regards,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
If we look at all the projected figures then by 2020 we will have double the amount of people aged over 65 and only 5% of people entering the workforce by 2020. These are government projections. If you review these figures then how did the budget address these issues. Sure there were tax cuts. The superannuation levy was abolished. But what was required was a stratagy for people to save money. At Liberal party state council about a year ago I put up a policy motion to abolish capiatal gains tax after 15 years as an incentive for long term savings. The motion was passed without dissent. That was the last I heard of it. What is clear is that now is the time to look at savings issues. If we accept that 80% of people will not be able to maintain there current lifestyle in Retirement perhaps the government missed an opportunity to introduce savings stratagies at the budget. Perhaps this is even more important than workplace reforms
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
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the CGT discount distorts the market. my sister just wrote a research paper on this very topic actually. abolishing it after 15 years would just be another gravy train for a few.
when you consider that CGT was brought in to create equity of taxation between all income classes, it woul dbe a mockery to turn around and say that the guy who has held a property for 15 years no longer needs to pay tax, yet the poor old PAYG employye gets slugged week in week out.
http://www.megainvestments.com.auJohn Carroll
Come off it.
We did not even have capital gains tax until 1985. In New Zealand capital gains tax and stamp duty have been abolished. If we can assist 10% more people to be self sustained and not having to rely on the State for a pension it will make a huge difference. What do you suggest yets alm stay on the same level while the country goes broke. It may also encourage more people to invest. It may well be that capital gains tax will only be abolished on the first investment, thereby an investor could sell a property reduce the dealt and live on the proceeds
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
but the reason it was introduced was to capture this income – so why the heck cut it back?! either it should be taxed or it shouldn’t. as for encouraging investing etc… cut my income tax rate to nil and I will invest for retirment!
http://www.megainvestments.com.auJohn Carroll
I’m 100% with AUSPROP on this one (yes, I think this is a first!).
IMO, personal income, companies, and capital gains should all be taxed at more or less the same rate (say 37%). This would remove the distortions from the tax system that encourage people to corporatise and capitalise their personal income.
As for encouraging people to save, super is taxed when you contribute, the earnings of the super fund are taxed, and you get slugged again when you retire. Something should be done about that.
Also, regular savings accounts are taxed twice; you pay tax on the money you save, and then you taxed again on the interest.
No wonder household savings rate has collapsed in the past decade. There are far more tax incentives (like negative gearing) to borrow than to save.
We live in debt bubble! Look at these charts for the past 10 years…
Current account deficit blows out to $16B.
http://203.26.51.178/cracker/54029_1.jpgHousehold savings collapse:
http://203.26.51.178/cracker/54029_2.jpgHousing credit explodes:
http://203.26.51.178/cracker/54029_3.jpg
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