Abbott hoses swift action on Murray

From Yahoo:

Prime Minister Tony Abbott has welcomed the “useful” recommendations from the independent Murray review handed down at the weekend but won’t jump to any conclusions.

“We’re not going to rush something out before Christmas,” he told ABC radio.

“We’re going to carefully digest the report. We will follow the community debate, we’ll take people into our confidence and then we’ll make decisions.”

…Treasurer Joe Hockey will be undertaking further consultations before responding to the recommendations after March.

That’s fair enough, I guess, but rising capital cannot begin soon enough.

Comments

    • For replacement 😉

      I’m confident Abbott and Hockey sought an indepth far-reaching report – that’s why Murray was appointed.

      The response by various vested interests will enlighten some MB readers as to just how difficult it is to achieve reform in the current factional environment.

      The Government only too aware of the need for the Bug Sell (would have been an idea to acted similarly with the Budget) but the damage is done. Let’s hope some of these measures get through.

      What’s NXT?

  1. “…Treasurer Joe Hockey will be undertaking further consultations before responding to the recommendations after March.”

    So, responding in March, there will be announcements of what is going to be done several months after that, which will be proposed to be implemented several months after that just in time for the election, and will be blocked.

    Lets be very very clear – NOTHING WILL COME OF THIS REPORT.

    Absolutely NOTHING. Nothing will be done – you can bet your house on it.

    .

    • What if it does? Hearing Josh Frydenberg and Kellie O’Dywer speak there is a chance that something will occur. The Liberal Democrats are to the coalition what the Greens are to Labour and they along with Bob Day understand the gravity of the housing situation.
      If the coalition was brave they would take this on and it would I think help them in the polls. John Howard last week spoke on the need for reform on housing on sky (even though he caused the problem). Remember you never commission a report you do not already know the answer to.
      This is a reforming government which has achieved an enormous amount in its first year. If it is going to go out they may as well do it with a bang. That is the lesson of the Victorian election and it is understood federally.
      I would not bet my house on reform but I would not bet my house on there being no reform either. Whether it gets through the senate is the real challenge!

      • Yep, the libs have a similar opportunity for reform that Rudd & co decided against/made things worse circa GFC. Never waste a good crisis. Let’s see.

      • “Hearing Josh Frydenberg and Kellie O’Dywer speak there is a chance that something will occur. The Liberal Democrats are to the coalition what the Greens are to Labour and they along with Bob Day understand the gravity of the housing situation.”

        lol. KO’D on NG at 5min30sec

        http://www.abc.net.au/news/2014-09-29/investors-are-getting-around-firb-rules/5777900

        Bob Day? lol you mean the senator for the HIA

        http://www.afr.com/p/business/property/negative_gearing_better_for_affordability_Q7ZPcnU4qReKtqqidhtDGO

      • Patrician,

        Thanks for those links. I was going off his Bob Day’s interviews on lateline just as he got elected. Seems a different guy to what I thought!

      • The willingness for LNP and ALP “leading lights” O’Dwyer and Bowen to swallow and regurgitate the HIA NG rent increase rubbish as fact, in the face of repeated and irrefutable evidence to the contrary from respected economists demonstrates the level of capture by the HIA.

      • Bob Day is RIGHT, dammit!

        He has been right all along about housing supply being the decisive factor, and getting this right, would make NG revert to the beneficial part it plays in the overall package.

        Getting land supply right, would make immigration beneficial, low interest rates beneficial, easy credit beneficial, subsidies to FHB’s beneficial, upzoning beneficial, lack of a CGT beneficial, securitisation of mortgage debt beneficial, derivative insurance of MBS’s beneficial, etc etc.

        If you get the land supply wrong, everything else will be wrong too. Hugh Pavletich in NZ is another one who has been saying this for a decade already.

  2. i reckon they will do a few things, but they will be fearful of inciting a hostile left wing media (ie fairfax, abc etc) whose hysterical reaction to a great budget would make anyone wary of implementing good policies. They do need to fix the deficit, there is some money to be gained from neg gearing tweaks. CGT would help, but that assumes prices will rise in the future

    … put it another way, i dont think we will see a wholesale rejection a la Wayne Swan / henry report. Wayneo was the biggest friend the banking / property / boomer complex have ever had.

    … whilst these changes are necessary and will happen eventuall, personally I fear being the one that gets burned at both ends ie pay exorbitant property prices and sell low after massive property falls, support retired boomers with high taxes but get no super concessions when in a position to up contributions. I think late gen X / Gen Y will be the lost generation. The ones after that should be ok, boomers can fall off the face of the earth …

    • The harsh reality is the political landscape has been completely feral for years now. I’m sick of the all the excuses from Labor and now the Coalition. The Coalition needs to adapt and change or struggle for credibility like Labor did.

  3. This is the first of three reports that will push the Politburo into a corner……

    FSI Inquiry
    Tax White Paper
    Senate Inquiry into Affordable Housing

    With the work done by Murray it will be very interesting to see the alignment of recommendations coming out of the next two reports.

    If recommendations around Negative Gearing, Leverage in Superannuation Funds and CGT concessions are aligned it will be very difficult for the Govt of any persuasion to act differently.

    I am quietly optimistic that we might now see real change in 2015

    • It’s all too late I think. The Government has exhausted its political goodwill on nonsense ideology projects, even if they did start making good noises (which is itself highly unlikely), what says that Labor won’t just say ‘No’ for the sake of it? They’re clearly following Abbott’s strategy now. This is ignoring conflict of $300million or so property owned by parliamentarians.

      Like flawse says, the answers lie back in time. The last real chance to take action was the Henry Review. It’s far too late now.

      • @Jason – you are probably right.

        BUT what if Labor was to come out in full support of the Murray Inquiry and its recommendations.

        Wouldn’t that be fun!

      • Jason, I agree that unwinding this would have been a lot less painful years ago. The 2003 PM’s TaskForce Report was a MAJOR missed opportunity.

        Christopher Joye, the main author of the Report, had an op-ed published in “The Australian” at the time of the Report’s release:

        August 2003:

        “Providing Affordable Housing Must Be A Priority For All Tiers Of Government”.

        In it, he said:

        “……there is an affordability problem in Australia, but it has nothing to do with income levels, interest rates or a dearth of exploitable land. Rather, it is the result of oppressive local and State government regulations (often imposed with the enthusiastic support of proximate communities) that severely constrict the stock of low-cost properties and, when combined with ever-growing demand, artificially inflate the price of housing……

        “…….. we believe that several innovative steps can be taken to improve the availability of housing without resorting to subsidies, and which would contribute to a striking reduction in the costs of home ownership right across the country. The overall objective here is to accelerate the approval and land release process so as to promote private-sector investment in the production of affordable housing…….”

  4. Our self-serving pollies need to workout how this will effect their property portfolio value and chances of re-election.

  5. “We will follow the community debate,”

    See which lobbyists are paying the most more like …

    • Agree. Nobody believes in reform in Oz anymore. We’ve seen it put in the too hard basket soooo many times 👿