Hockey “flying blind” on negative gearing

From BS on a parliamentary exchange today:

Treasurer Joe Hockey is “flying blind” on the topic of negative gearing, amid revelations the Treasury has not modelled on the impact of federal taxes on house prices, Labor MP Jim Chalmers says.

…Dr Chalmers questioned the officials about Treasury’s modelling on negative gearing, noting ratings agency Moodys’ estimate that negative gearing added 9 per cent, or $44,000 to the cost of a typical Australian home.

The officials advised that Treasury had no modelling on the impact of the negative gearing on the housing market.

Dr Chalmers asked: “So when the Treasurer … is providing advice to his state colleagues about what they should do, and they ask him what his analysis is of tax treatment including negative gearing, he doesn’t have any Treasury analysis to lean on? He’s just relying on anecdotal and other things he picks up around the place?”

Who could have know that Joe Hockey, loaded to the gills with investment property, was full of shit on negative gearing?

Owing to commercial sensitivities, MacroBusiness Industries can neither confirm nor deny the rumoured deployment of a number of Telephunken U-47 Spruikbots to Canberra:

Comments

    • We have a property spruiker for a Treasurer. This is what Australia has become.

      That’s correct. There is nobody up there in power who cares about you, who is looking out for you. It’s dog eat dog in a way that reminds me more and more of my time living in the US.

      “Toto, I’ve a feeling we’re not in Kansas anymore” (sorry if that’s too US-centric a quote)

      • This no longer feels like the country I grew up in. You know, I lived abroad for several years and returned to a country that I sometimes feel I don’t recognise anymore..

  1. JacksonMEMBER

    I doubt there is any facts or research behind any of the recent government decisions, this can not be an isolated case.

    • sbinderMEMBER

      There is research. They relentlessly examine what the average liberal voter thinks, and position themselves accordingly.

      • Haha – correction …..they relentlessly check their bias and what the corporate lobby wants and then frame policy. I think they’ve left the average LNP voter behind with the rest of the dross.

  2. Hockey Strap is just pushing an agenda. No conscience, no ethics, no humanistic qualities present. A no-brainer in all respects.

  3. Our government will not touch NG, will not include PPR in aged pension means-testing, will not seriously crack down on illegal foreign investment in Aus RE… Why? Because the boomer/grey army of this nation do not want their assets to fall 10 or 20% in order to give young Aussies a leg up in this over-priced over-taxed retirement village of a nation.

    Generation X, Y and Z need to pull together and vote out this boomer-dominated parliament circus… How will this happen? Last time I ran the numbers X, Y and Z and younger now had the voting majority… Just need a party, a purpose, a voice, Clive Palmer’s bank account and get this thing moving!

      • God’s waiting room and X,Y, Z’s wiping the grey arses. What could be wrong with that? 🙂

    • At the core of it in Canberra is of course the $300M worth of conflicted interests (IP collective ownership by our nations senators) that decide this country’s future around housing affordability. Why should Australian voters tolerate this $ amount of unequivocal conflicted interest in our parliament on a topic that affects nearly every young Australian? It’s a disgrace

    • It’s easy.

      Vote for the single issue party, Affordable Housing Party.

      http://affordable-housing-party.org/

      Forget the treasonous Labor and Greens. They don’t care about you, me, or anything but themselves either. This delusion is what’s stopped any chance of reform thus far..

      • truthisfashionable

        I am really hoping we have enough single issue parties next election. My vote order would be;
        1. Affordable housing
        2. Stable population
        3. Renewable energy

      • Getting them to preference away from LNP Labor and Greens and to each other is the key to their success.

      • @truthisfashionable – this might sound altruistic but I’d rather have renewable energy come first before affordable housing. As much as I’d like my own home, I care much more for the planet we live on… After all I could camp outdoors and be happy. No point having a house but an unlivable planet…

      • @Gavin

        I do think that’s altruistic Gavin. There’s 90 million more people on the planet every year (not a typo 90 000 000). We’re fucked, doomed. Addressing our energy use isn’t going to stop what’s coming humans way. No one’s addressing population which is our biggest environmental issue times 1000. Australia is populating at 400k a year, and has led to the biggest culling of species on the planet. What we’re currently doing by allowing our politicians to do this has to be the dumbest thing any democracy on the planet has ever allowed. Population growth is a far bigger issue than renewable energy and corporations and government are purposely presenting other problems while they feed their corporate mates with more and more consumers.

  4. Facts don’t matter when you’re fronting for vested interests and defending your own ideological position. The only relevant question is “can I spin this ?”

  5. The Patrician

    Flying blind on NG data
    Flying blind on FIRB data
    Joe doesn’t know
    Joe doesn’t want to know
    Mind you Dr Jim Chalmers wouldn’t want to throw too many stones being a vocal apologist for the “flying blind asleep at the wheel” Brian Wilson

  6. How about:

    “The Treasurer draws his information from a number of formal and informal sources to arrive at a considered opinion that he is sure will bear out the correctness of what he has told his fellow Parliamentarians and the wider electorate. You will, of course, be aware that he has in the past chosen to disagree with Treasury’s’ advice, and rely upon a wider spectrum of stakeholder opinion. This….is no different to those cases.”

    Now, move along…..

  7. No modelling. I doubt it. More like they did the modelling and burned the report. Stop assuming good intentions. These are evil men with only their elite friends’ interests in mind. They couldn’t care less if we all starved to death since we’d still vote for them.

  8. He is being deliberately obtuse, like all other treasurers before him. He probably has daily scheduled calls from the RE and Developers lobbies to keep him on message.

  9. Surely no one is surprised.

    I was checking out Cameron Murray’s submission to the Home Ownership Inquiry, and his fundamental argument is that any policy which reduces the price of housing (as quarantining NG probably would) represents a massive redistribution of wealth away from the landed majority, to renters and future generations.

    Good policy or not, it’s very difficult to enact change when you’ve got such a massive political hurdle.

      • Hilarious. Decrease LVR for MP praise, then decrease assessment rate. Same over leveraged outcome. FFS bond holders demand higher rates already!!

    • Here, HnH, Lorax et al, this will surely ruin your weekend. How long are you going to hold out for the MP fairy?

      • Even StevenMEMBER

        CBA are still complying with APRA serviceability requirements (minimum 7% mortgage rate). Should it be higher? Maybe… But let’s be honest 8% mortgage rates would KILL the economy and property market. Do we think it will get there?

        Only if foreign (offshore) lenders depart in droves and even then, you’d have to think RBA would intervene with QE.

        Does anyone on MB truly believe the RBA wouldn’t resort to Australian QE if needed?

        No? Thought so…

  10. reusachtigeMEMBER

    Hey!! Youse guys better shut up about negative gearing because you are ruining it for us far better looking people who are making a living out of ripping off you renting scumbags. Let it go now or else, ugly people are noticing your rubbish!!! Take this as a friendly warning. I have clients on the books who will put youse guys on the piracy list. Easy done!

  11. ceteris paribus

    Abbott, Hockey and to a lesser extent Shorten appeal to fear, greed and ignorance in electors, targeting a less informed community segment. Their strategy is highly non-rational but far from totally irrational.
    MB employs a highly rational discourse in its economic policy analysis, which is essentially different from the manipulative discourse of fear, greed and ignorance dominating the Liberal and to a less extent the Shorten strategy.
    It’s all about keeping us infantilised.

    • reusachtigeMEMBER

      “I’m intelligent and informed because I read doom creator blogs”… bet you’re far from good looking and you’ve got no investment properties!

  12. Does it have a mining spruik bot mode? Perhaps it could replace 3d who seems off his game lately.

    • I’ve noticed a swarm of new bots lately, especially on climate and coal issues.

      Paying for them is probably just a rounding error on the mining magnates’ bottom lines 🙄

      • Desperation methinks. Upping the nonsense and hysteria ahead of Paris. Personally I would like to think the tide is turning against them, as they hopelessly cling on to their mission through internet commenting boxes, just as they cling to their own outdated fuel sources. But who knows, the idiots are in charge

  13. A-HA!
    Howard’s gun control laws make sense now, taking the long term view.

    Maybe that nice young chap on Q&A should have spun this from a housing point of view then spoke about (metaphorically of course) the Treasurer’s head rolling merrily along Canberran streets.

  14. The Patrician

    “Moodys’ estimate that negative gearing added 9 per cent, or $44,000 to the cost of a typical Australian home”
    More like about $50000 now ……..or adds about $100000 to the price of a Sydney house