ANZAC Day Links, 25 April, 2016

GeorgeWLambert SgtofLightHorse

George W Lambert, A Sergeant of the Light Horse, 1920 National Gallery of Victoria

I will get some more up as I have time (but I am going out and have loads of work)….

…Terra Specufestorus….

and as a little something extra for those wondering if the sacrifices at Gallipoli or the Western Front and New Guinea, North Africa or Indonesia were about feeding a nation to property speculation……

PRIME MINISTER:

Well thank you very much. It is great to be here David and with Scott Morrison the Treasurer. The Mignacca family, Julian and Kim, are a great example of Australians who invest in order to get ahead. Julian and Kim bought an investment property in Cronulla which they rented out. They sold that and used it to pay down the mortgage here at their home. They bought another apartment here in Penshurst which they are negative gearing. It is costing Julian – he is deducting $300 a week on that. He has done that in order to buy a place for his little daughter Adison who we just met who is nearly one. He couldn’t afford to do that if Labor’s reckless change, its reckless new housing tax was ever implemented because he just couldn’t afford it. So he wouldn’t have been able to afford to buy the place in Cronulla. He wouldn’t have been able to afford to pay down his mortgage here at his home in Penshurst. See Labor’s reckless changes will reduce property values; they’ll devalue every home, every property, in Australia. They’ll result in increased rents because they will reduce the number of rental properties available. So it is an extraordinary trifecta of outcomes the Labor Party is proposing in their recklessness.  They are going to drive down home values, drive up rents and discourage investment. That’s why we won’t have a bar of it. Scott.

TREASURER:

Thanks Prime Minister. It is great to be here in Penshurst today. I want to echo what the Prime Minister and David has said. Labor’s housing tax will push up rents. It will undermine the value of houses right across the country, your home, and it will target and attack mum and dad investors who are just trying to get ahead. A tax on mum and dad investors is not a good plan for families. It is not a plan for growth. It’s not a plan for jobs. And that is why we will have no bar of it because we want to see more people like the family here being able to have the opportunity to get ahead in the future.  The other thing to remember about the value of your home is when you have confidence in the value of your home you have confidence in this economy. It has been the householders of Australia; it has been the mums and dads of Australia, who have been out there driving this economy through this very important transition we are going through. From the investment boom in the mining sector through to this more diversified economy that we saw grow at 3 per cent last year. Labor’s housing tax puts at risk the confidence of Australians in the value of their own home, which drives their confidence in this economy. That’s why it’s just a really, really bad idea and we won’t be doing it.

JOURNALIST:

Mr Turnbull why has it taken you so long to rule out any changes? Labor’s measures have been on the table since February.

PRIME MINISTER:

Well we announce our tax measures or our approach to tax in the lead up to the budget, but I don’t think today’s announcement comes as a surprise to anybody given the criticisms we have made on Labor’s reckless plan. But it is important for Australians to understand that there is going to be a big choice in this election. If you vote for Labor and Labor wins government that means higher rents, lower home values, less investment. Now we believe, Scott and I and David believe, that we need to see more investment in Australia. That’s why we are not putting up capital gains tax the way the Labor Party is. You want people to do less of something you jack up the tax on it. What Labor clearly wants is for there to be less investment in Australia because they are jacking up the tax on investment.

JOURNALIST:

Prime Minister what will you do to improve housing affordability particularly in Sydney and Melbourne?

PRIME MINISTER:

Well look I will ask the Treasurer to add to this but can I just say the key, there has been a huge amount of work done on this over many years. The key to improving housing affordability is more houses, more dwellings, houses and apartments. So our Cities policy is focused on delivering city deals which will encourage the right type of development that produces greater amenity, more liveable cities, and more affordable housing. This is a supply and demand problem. There has not been enough supply. There has been a tonne of work done on this for well over a decade. Scott, do you want to add to that?

TREASURER:

What we have seen over the last year or so, particularly in this city, is we have seen an increase in the construction of new homes and that has been critical to ensuring there has been there is the pipeline of supply that is coming on which really addresses this issue. That has been a product, particularly here in this State, of a State Government that has been reforming land use sale practises. They have been opening more land. They have been dealing with the supply issues. At the same time late last year APRA the regulator brought in new rules which has seen the house prices particularly here in Sydney and in Melbourne and in other places moderate by dealing through proper and targeted regulation the rules on the banks in terms of how they lend money. So you have the regulator doing its job, you’ve got particularly here in States like NSW, the State Government doing its job, and what we have to do is ensure that there continues to be mum and dad investors who are out there willing to invest. Ensuring there are rental properties like right here in Penshurst that people can rent. If you take one in three buyers out of the market this is what happens, under Labor’s proposal when you buy a new home and you put the key in the front door and you turn it, it’s like buying a new car, once you drive the new car off the lot it depreciates in value because you’re selling it into a different market. This is what will happen under Labor’s proposal; the second you buy a new home and you turn the key in the door, it turns into an old home and the market you are selling it into will be a lot softer. That is why it is such a bad plan.

JOURNALIST:

You spent a lot of time looking at the GST and what any changes would do, and you released modelling to show what those changes would mean. Where is your modelling for your position on negative gearing?

PRIME MINISTER:

Well there have been a number of studies released about it but can I just say to you this is an issue of common sense. Around a third of the buyers in the residential property market alone are investors. What Labor is proposing to do is to take one third of those buyers out of the market. Now if you take one third of the buyers out of the market, all other things being equal, prices are going to fall. That is obvious. So it’s, what Labor is proposing is a huge reckless shock to the market. This is not fine tuning. This is a big sledgehammer they are taking to the property market. Now the residential property market is the biggest single assets class in Australia. For most Australian families it is overwhelming their biggest asset. So this is putting all, the value of every Australian home at risk. There is no question about that. If I may just go on. Labor’s ban on negative gearing proposal, goes well beyond residential property. It applies to commercial property as well. So under Labor you would not be able to negatively gear a shop or a factory or an office. You also wouldn’t be able to negatively gear shares. So we were just talking to Kim and Julian about starting businesses and how often people will borrow some money, invest in a company that might run a restaurant, or a trucking business or any number of small businesses. That is how small businesses start, people borrow some money, capitalize the small business, and get going. You won’t be able to negative gear that. So what Labor is doing is standing in the pathway of enterprise and small business and entrepreneurship. Now we believe that the future of our economic growth and the jobs of our children and grandchildren depend on more investment, more entrepreneurship, more people like Kim and Julian having a go. That is why we are not having a bar of Labor’s proposed changes. And as you’ll see in the budget that Scott will bring down on the 3rd of May you will see a budget that is designed to drive growth and jobs.

TREASURER:

It’s the Labor Party who is proposing a housing tax not the Government. We have the common sense to know that we need to leave the system as it is. We have the common sense to know that. So it’s for the Labor Party who are proposing a housing tax to explain their policy and why they think it will be good for people who are just simply trying to get ahead. See what the Labor Party doesn’t understand about their housing tax proposal is this; the overwhelming majority – some two thirds of people who are engaged in the sort of investments that we see here – are people on incomes of less than $80,000 per year. It’s also, its nurses, its teachers, its police officers, it is certainly plumbers in terms of Julian here, and these are the people who engage in investing in property for their own future. Now it is Labor that is proposing a housing tax. It is Labor. So it is for them to produce the modelling on their policies.

JOURNALIST:

Prime Minister on a related topic, if you provide income tax relief will that makes it too expensive to then provide company reductions?

PRIME MINISTER:

Well you are asking me to speculate on the contents of the budget.

JOURNALIST:

How about we come on May 3?

PRIME MINISTER:

Yes come on May 3. We’ll make sure you’ve got a seat.

JOURNALIST:

Eight per cent of borrowers in Sydney are first home buyers –

PRIME MINISTER:

Just start again if you could.

JOURNALIST:

Just 8 per cent of borrowers in Sydney are first home buyers. What are you going to do to make housing more affordable to them?

PRIME MINISTER:

Well the critical thing is more supply as I said. The reason why, the reason that housing has become less affordable in Sydney for example, but especially, has been because there has not been enough supply. Now what Scott said just a moment ago is absolutely right. The Baird Government has changed planning laws, changed planning procedures to make it faster basically to get DAs so that projects can get approved, subdivisions can be affected. It has been a supply side problem. Look can I say to you we want to see more houses built, more apartments built, we want to see more construction and more construction jobs. What Labor is proposing on negative gearing will absolutely put the brakes on that because you pull the rug out of the property market.  The other reason, the other thing that we are doing of course, is restoring the rule of law to the construction sector. You know restoring the Australian Building and Construction Commission will mean that we will see the rule of law once again applying to the building industry because that lawlessness on building sites has been another very big brake on construction. It has added according to the construction sector, 30 per cent and more to the cost of construction. So that’s every apartment building, every school, every road, and every hospital.  So everything we are doing is pulling the same direction, more jobs, more growth, more construction, more affordable housing, more jobs in construction. That is our commitment. Labor’s policies, what we have seen of them so far are absolutely calculated and designed to slow that growth, discourage investment, and reduce the number of jobs. That is a policy that Australians, I’m sure, will not choose. What Labor is proposing undermines the prospects of every child, every grandchild, the future of every Australian and it certainly undermines the value of every home and reduces the availability of rental properties. So house values down, rents up.

JOURNALIST:

Mr Turnbull you were on the record a few years back supporting changes to negative gearing. Was that a mistake?

PRIME MINISTER:

Well look I think you are taking some comments out of context. Let me say to you quite clearly the changes that Labor is proposing to negative gearing will devalue every home in Australia. That is what they are designed to do. They are designed to undermine home values. But what they will also do is they will jack up rents. So you, Labor has a trifecta. They want to discourage investment, jack up rent and reduce home values. Thanks very much.

Ends

 

 

Comments

      • Just lucky that’s where all the teachers and nurses live then! You wouldn’t want those electorates to be stocked with lawyers and investment bankers….
        “Blockchain will bash investment banks” (AFR)

      • Silly comment Gunna – soldiers did not die for property, they died for freedom and the right to choose. And Janet, there is good and bad everywhere. Money does funny things to people, I have seen corruption in all sorts of places, from the mediocrity to the top, and recent Union officials show – many of whom get paid far more than bankers.

        This carte blanche labelling is shameful. As far as I know, I have never cheated anyone… have you Janet, a little on your tax return maybe??

        Expect more of you. You are usually so switched on.

      • It’s nigh impossible to cheat on a tax return in NZ! We don’t have ‘deductions’ like you still do ( bad move!).
        So, No, to answer your question. But, yes, I do know ‘how it works”; how when you, say, join The Board, all sorts of options are put up for you to evaluate (“You don’t have an account in X, so that we can pay your gross salary into it? Well, we have a branch there. We’ll open one for you and leave it to you to efficiently manage your tax liability” etc). Money does do funny things to people, and sad things too. The sad part is that those who stick to the rules find that The Corporate Ladder suddenly has only one set of rungs left on it, and they all go down…..

      • FiftiesFibroShack

        “and recent Union officials show – many of whom get paid far more than bankers.”

        I find that very hard to believe. Unless you’re comparing the top positions in a union to the average banker, but that would be a silly thing to do.

      • This is a good time to recommend that everyone re-read A Fortunate Life by Bert Facey. He has some choice comments about war. The other thing that struck me is how much ordinary people with little education could achieve in Australia when land prices were so low.

      • JohnR…

        Land prices are low for awhile after colonialism sets in…. after that not so much…

      • This chart is meaningless if it doesn’t also include income from capital gains, dividends etc.

        You might also put another chart side by side with it listing the electorates with the most tax paid.

      • Hey folks, we’re only 135 members short of registering an Affordable Housing Party for the Senate at the election. Would be great if you could join and recruit your friends who have concerns about housing affordability in Australia as well. We want this issue clearly on the ballot paper http://affordable-housing-party.org/join.html

      • ErmingtonPlumbingMEMBER

        “soldiers did not die for property, they died for freedom and the right to choose”

        Ha ha Yes, the freedom to choose to raise a family in an Australian Capital city in a secure, long term family Home?

        Wow Research !… I suppose “they” (soldiers who managed not to die) still have the freedom to choose, to not rent of any German or Japanese landlords out of respect for their fallen, former Aussie diggers in ww2. The Chinese were our allies in that conflict so young diggers can rent of them, guilt free,…though weren’t we fighting the chinese in Korea?
        Arwell luckily we are all free to choose to ignore that one.

      • Can we see percent of all income tax paid compared to percent of all income earned for deciles?
        The stats presented on this site are tendentious at times.

    • Malcolm and Morrison have made it very clear that they have no intention of taking any action that might put downward pressure on the price of new or existing housing.

      They have every intention of keeping the prices of existing and new housing as high as possible and forcing young families to pay for them with massive mortgages.

      The loading up of new private households with debts to pay for things that were previously considered the responsibility of government is classic neo-liberalism.

      https://pfh007.com/2016/04/25/malcolm-forgets-menzies-concept-of-home/

      Sure they made mention of increasing supply and of APRA doing ‘something’ but that is merely window dressing and puffery. You can be sure that if there is any sign that existing or new house prices may fall significantly and therefore put at risk the neo-liberal economic model of privatising the responsibilities of government they and their regulators (RBA and APRA) will throw every bit of national furniture into the furnace.

      The ALP and the Greens need to explain why driving housing prices up and saddling households with mammoth debts supplied from off shore is a toxic economic model for their future the future of their children.

      If they fail to explain that the Australian housing market and wider economy is run on foreign debt that must be repaid they will find it extremely difficult to explain why they are taking any action at all to reduce the amount of speculative credit that is being directed to the market for existing housing.

      • GunnamattaMEMBER

        That is essentially it….

        The ‘we cant allow house prices to fall’ line of reasoning is also why they are looking completely the other way on foreign buyers (and how these get their money) too

    • Australian Innovation: finding new sharks to jump every week
      or
      Australian Innovation: finding new ways to jump the shark every week

      Which one is it? Or is it both?

      Whatever it is, we are exceptional, we are different.

      • We’re only 135 members short of registering an Affordable Housing Party for the Senate at the election. Would be great if you could join and recruit your friends who have concerns about housing affordability in Australia as well. We want this issue clearly on the ballot paper http://affordable-housing-party.org/join.html

  1. FFS can one competent journalist put the “FIRB approval for new builds only increases supply but NG for new builds only doesn’t”contradiction to Turnbull/Morrison/O’Dwyer?
    Please?

    • And FFS #2; I’m trying to work out what position on “housing affordability” is left to Turnbull if any move that *may* put a little downward pressure on prices is off the table, for that reason? He claims to be pro-affordability by means of supply during the press conference … so he must be suggesting young people can only participate in newer cheaper less desirable markets, in lower quality dwellings in places they don’t want to live. Why can’t a journo put the logic of that to him and see what he says?

      • And FFS #3: for every Aussie that gets ahead one must fall behind! How about pointing that out every time MT & SM say it ……. Doesn’t seem quite so good then

  2. GunnamattaMEMBER

    I am going to have to start reading the Rupertarian if Kohler keeps writing good pieces like this – sums it up nicely…..

    http://www.theaustralian.com.au/business/opinion/alan-kohler/the-mignaccas-pointless-15-minutes-of-fame/news-story/9be9ed70c68b4116ef135b641b20f386

    The Mignaccas’ pointless 15 minutes of fame

    But politicians vying to scare and tempt may have missed the boat: the real estate investment boom is now all but over.

    In fact, the politics of negative gearing is devoid of reality. It’s a jolly good argument and all that, but negative gearing is out now. It doesn’t really work.

    The Reserve Bank’s recent Financial Stability Review said the share of investor loans with loan to value ratios (LVRs) of more than 90 per cent have “declined markedly”. APRA’s hypothetical borrower exercise in September last year found that the maximum loan size fell by around 12 per cent for investors and 6 per cent for owner-occupiers.

    “As a consequence, the composition of housing credit growth has shifted away from investors towards owner-occupiers…”

    Buying an investment property for the purpose of negative gearing with an LVR of less than 90 per cent is pointless.

    The average rental yield on apartments is about 4 per cent. The average interest rate is about 5 per cent. To make a deductible loss on an investment with that yield and interest rate, the LVR would need to be at least 80 per cent, preferably 90 or 100 per cent for the deduction to be worth the risk.

    The reason property investment lending has collapsed is that banks are no longer lending 90 or 100 per cent of value, plus conveyancing costs, as they were during the boom, and with interest rates as low as they are, the tax deduction is too small to be worthwhile.

    • TailorTrashMEMBER

      And people like this pair don’t realise that “investing” in grossly price inflated loss making rental properties is providing support to their own exclusion as home owners

    • ??? Has he ran the numbers? People add management cost, depreciation, repairs, etc.. on top of the interest only loan interest. People with 2-3 investment properties get enough deductions that move them from the 37% bracket to the 19% bracket and often to Nil tax. Why do you think there’s a strong opposition to fiddling with NG?? It’s the perfect no brainer rort to reduce one’s taxes in this country.

      • Yes. Like the improvements claimed as repairs which I hear so many property investors bragging about. Rules are of no use if there is no enforcement.

    • It was a message Penshurst social worker Kim, who managed to keep her 11-month-old Addison happy during the whistlestop tour, said she supported.

      Husband Julian, a plumber, said the family had bought an investment apartment at Cronulla, then traded it for another property.

      JULIAN MIGNACCA’s Australian Business Number (ABN) is 21142124210 and it’s Australian Company Number (ACN) is . It’s registered address is NSW, 2222. It was registered on 19-04-2012
      JULIAN MIGNACCA is of Individual/Sole Trader

      So a social worker and a plumber leverage into a house purchased in Feb 2016 for $980k and an investment property losing $300 per week….

      Doorstop with Treasurer/PM https://t.co/GrnvzlMdLZ

      That home was purchased Feb 2016 for $980k. 62% over 2012 price. https://t.co/GIKkhfd5qy

      And the LNP cant see there is an issue here?????

  3. AEP on China’s fresh boom nears peak just as amateurs pile in (http://www.telegraph.co.uk/business/2016/04/24/chinas-fresh-boom-nears-peak-just-as-amateurs-pile-in/) – purple patch….

    Key Points:

    (a) Elite global banks have begun to warn clients that China’s latest credit-driven boom is nearing its peak and will lose momentum by late summer, dashing hopes for a genuine cycle of fresh economic growth and commodity demand…

    (b) …mini-recovery is likely to last another 3-4 months…

    (c) China’s reflation drive has been explosive. New home sales jumped 64pc in March from a year earlier. House prices have risen 28pc in Beijing, 30pc in Shanghai, and 63pc in the commercial hub of Shenzhen. The rush to buy has spread to the Tier 2 cities such as Hefei – up 9pc in a single month. “The housing market is on fire,”… Cement production jumped 24pc in March and infrastructure investment rose 19pc.

    (d) The mini-boom has caught hedge funds and Western asset managers on the wrong side of some very large trades… They played the “short China” trade through proxies such as the Australian dollar or commodity futures. The most spectacular casualty has been Crispin Odey. His flagship European Fund has lost 31pc so far this year… Crispin Odey and other wounded China bears may eventually reap their reward, but first they must weather a short-term boom that is playing havoc with their positions.

  4. That dross served up by Turnbull and Morrison is only making me more sure about my decision to get a green card and blow that joint forever. There’s NOTHING going on in Oz except a massive housing bubble. Even the big mining projects are yesterday’s news, and as much as I don’t like extractive industries (I believe they naturally foster rent-seeking), at least they did something and provided raw materials to industry that otherwise would have been unavailable.

    Australians now think housing is risk free with better returns than everything and are happy to sell their kids out to maintain those. Young people… run away. Far, far away. It is going to blow up very very badly and you don’t want to be near it when it does.

    • Australia’s Weird we apparently now have a federal policy structured around maintaining house prices, there’s not even a moments thought given to the obvious macro-economic follow-on consequences of such a policy. Apparently in Australia insanity can be ring-fenced, so that nothing else gets impacted…weird Weird WEIRD.
      I think we’ve just been given a glimpse of what an Aussie Bail-in will look like, notice who it protects, it sure as shit aint “savers” nor are we protecting real investors nor in any way are we encouraging entrepreneurship or real business risk taking nope it’s all about maintaining house prices. whocouldaknowedit!

      • About 5 years ago I worked out they would feed EVERYTHING to the housing bubble, and that it would implode when there was nothing left to feed to it. I have not seen a single piece of evidence to suggest that I was wrong.

      • GunnamattaMEMBER

        Thats the biggest single issue for mine.

        Australia (or the LNP) is quite literally holding up, denying the need for, any form of economic reform, and embedding a moribund economic future for Australia, simply to protect housing speculators

        The Tory policy should be something along the lines of….. Torynuff: Our tax avoidance entitlement is stronger than your right to a competitive economic future

      • Bob,
        The Aussie Bail-in has been in place since at least Aug 2013 when rates were cut to record lows in the middle of the biggest housing bubble we have ever seen.

      • No Argument TP, the bail in was well and truly already in place, but I suspect they’ve just formalized the next step.
        As Gunna says Australia desperately needs Fiscal/tax policy that shifts the balance away from housing speculation and towards individuals and corporations taking risks to develop new and differentiated products and services. Even MT himself (pre PMT) was heard to utter phrases voicing a similar sentiment, yet now apparently housing speculators need to be protected, protected from what…their own stupidity…how’s this policy going to work in 3 years or 5 years time when the average Sydney house cost $2M, what more protection what about $3M same solution I guess.
        Now I’m the first to say that in the end analysis it all comes down to adequate supply, but it’s critical that that additional supply be allowed to affect the market and on this very point we have PMT blowing it out his @$$.
        Like LD it’s over for me, I might return to live in Oz once my work life is over and done with but lets be honest how likely is that. There’s no point even denying it, these stupid policies are well and truly in place and they drive an invisible hand that continues to adversely shape Australia’s future. My conclusion is the smart Aussies (those that could create a clever country) either leave, join the RE game or sell their soul for glimpse at political power (looking at you MT)

      • Governments tax the behavior they want. In this case it is clear that housing speculation is the behavior they want..

        This is going to be an interesting election and I think may be 1 that determines if I stay or go.

    • Ha! Good luck with that. Once the IRS gets its claws into you, they’ll have a grip on everything you own, both now and in the future, including any monies that you may have coming to you in the future from a non US source (think inheritance for example). And any desperation move back to Straya down the track won’t necessarily shake them off either.

      • The IRS are brutal. Many ex-pat American’s I know that live in Colombia are always complaining about the 1040 Schedule B form they need to fill out which stipulates that any foreign account in one’s name is required to be reported to the IRS.

      • Yep, I’m now sorry I became a US citizen. I’m supposed to fill out annual returns on my Oz income for the IRS, but fuck that, life’s too short. I am now not even able to relinquish US citizenship because you have to have 5 years of clean returns (and pay a hefty fee) before they will allow you to say goodbye.

        Why expat Americans are giving up their passports

      • There’s nothing unusual about the taxman wanting to know about all your assets and income, no matter where they are. The three countries I’ve lived in – Australia, Switzerland and the USA – all do it.

        I imagine the countries that don’t are the kind who don’t raise an eyebrow at people who live like kings but say they have he income of a pauper.

      • I agree with drsmithy. The US may be taking the lead in tracking the income of their citizens, but its only a matter of time before every (developed) country does. The global response to the release of the Panama Papers only makes this more likely.

      • Drsmithy and switters, with all due respect, you know not whereof you speak. Google “FATCA and expat and citizenship” before asserting that there is nothing unusual about the US system. 🙄

        The US is alone amongst developed nations to practise citizen-based taxation. Every other developed nation in the world practices residence-based taxation. In fact, Eritrea is the only other country in the world to practice citizen-based taxation. It ranks 174 out of 178 countries in the 2015 Index of Economic Freedom.

      • My Vet is a yank that has been here since 95, had to fill out 200 pages vs the 20 of an aussie, seriously considering making the move to citizenship now.

        Skippy…. Wished him well on a trip back to visit rellies and enjoy the TSA / Customs welcome…

  5. It’s not that Malcolm can’t fund state schools and hospitals, it’s just that he would rather fund expensive tax shelters for the rich

  6. ALP should now propose to disallow Temp residents from purchasing property, thereby eliminating a big loophole in the FIRB clown show – I think that should be enough to get them across to the Treasury benches after the next election.

    Anyone has any figures on the voter demographics in terms of Boomer + early Gen X versus the rest of voters in % terms?

    • It’s madness that temporary residents are allowed to buy property in Australia. Why can’t they just rent if they are going to leave the country anyway?
      we’re only 135 members short of registering an Affordable Housing Party for the Senate at the election. Would be great if you could join and recruit your friends who have concerns about housing affordability in Australia as well. We want this issue clearly on the ballot paper http://affordable-housing-party.org/join.html

  7. Just read that Turnbull thing up the top. It’s not a parody right?

    He couldn’t afford to do that if Labor’s reckless change, its reckless new housing tax was ever implemented because he just couldn’t afford it.

    How in the actual fuck is removing a deduction a new tax?

    Fuck off Malcolm.

    PS where’s my NBN you pompous git. I should add incompetent pompous git.

  8. FiftiesFibroShack

    It’s clear that no matter who leads the LNP they’re going to end up being captured. The party is captured. The ideology fueling it has more in common with a religion than a source of sensible policy.

    I’m going to enjoy watching all those

  9. If Malcolm was about ‘productivity’ I’d vote for him, but now he’s not, it’s all about protecting the vested interests of a few. I thought of all pollys malcolm might understand this. Such a shame, and well done Mal you two faced…

    • Only one problem, he’s a smooth talker and Shorten comes across awkwardly. If he got on the news and straight up said “I know I’m not as polished as Malcolm, but…”
      he’d win.

      • C’mon nudge. Labors policies are winners. Liberal thought bubbles have reeked.

        The hiccup is Shorten. Even Bowen would sail in.

      • Yeah Gary, Labors current mutterings are better. And Bill seems to have had a partial personality injection of recent, it’s nice to see him smile – even with his own Albatross around his neck. But we’ll see if anything actually changes if they get into that hot seat, they’ve played their part in blowing this bubble too. Managing the bubble down steadily is probably their goal but when the chips are down, they’ll do whatever it takes to ensure it doesn’t pop on their watch either!

        You could be right about Bowen too, but at the end of the day they’re all just coloured variations of the same sock puppet, & the hand that slides into them will be just as comfy whatever the outcome of any ‘election’.

      • Productivity is not a good economic metric, it has no distribution in it and looking back on the last few decades in only goes to the upper most quintile e.g. more only means top shelf enrichment.

  10. FiftiesFibroShack

    It’s clear that no matter who leads the LNP they’re going to end up being captured. The party is captured. The ideology fuelling it has more in common with a religion than a source of sensible policy. A sensible response would have been to go to the election with a simple cap on NG deductions, but not even that is possible with these captured ideologues.

  11. MT is the ultimate disgrace of all. He made a lot of the right noises prior to becoming leader, and is wealthy enough not to need to give a damn about the money. He was well positioned to have a go at doing something for the greater good. Yes, I know the puppetmasters stand behind him, but in his fully aware embrace of the same old lies, he has shown himself to be morally bankrupt.

    As others here have said, the political system is broken. Let’s have a Royal Commission into lobbying and its influence on our political process.

    • Your PM Malcolm “wealthy enough not to need to give a damn about the money” Turnbull and our NZ PM John “wealthy enough not to need to give a damn about the money” Key both pretty much said the same things BEFORE they got to be PM ie: You don’t get out of debt by borrowing more money; voters are intelligent enough to understand the hard decisions that have to be made if you explain it to them etc etc. Yet BOTH changed their tune in the same way. Why? Perhaps because:
      (1) When you become PM you get told ‘the real situation’ not only by your officials, but by the officials of far bigger powers than you, and as such,
      (2) “You will do as you are told, so you don’t drag us down. If you don’t, we’ll ensure that your country becomes another Greece. It’s up to you….”
      Just a thought….

      • Ah – the mob protection racket style: “Nice lucky country you have here, it would be a shame if something were to happen to it, now, wouldn’t it? Now, be a good boy and run this up, for the country”

      • That is a truly enlightening article Peter.

        “He makes it clear that he thinks people are perfect fools and haven’t got a brain in their head”

        It’s official – Australia is screwed.

    • “Packer once quipped to a friend that Turnbull frightened even him. (He told the same person he would never stand between Turnbull and a bag of money.)”

  12. PM: we will make homes more affordable by building more, much more home. Labor wants to make them affordable by reducing prices of existing homes.
    J: Are you sure building more homes will not make existing one cheaper?
    PM: Well look I think you are taking some comments out of context.

    • TailorTrashMEMBER

      Building more homes that are for sale to foreigners and are unaffordable by young Australians …….Good one PM of Australia ……

  13. Malcolm
    Can you tell us how allowing NG on existing dwellings encourages investment in new dwellings?

    • Yep I know I’ve said I hate renting but in actual fact I love it right now. I love not worrying about negative equity possibly being right around the corner. I love it that I can pack up and leave whenever I like.

      Of course it isn’t the perfect position to be in but it could be worse also.

  14. So lets be crystal clear, Malcolm’s plan to improve housing affordability is to make houses more expensive.

    • That is exactly what Malcolm and his investment property owning Liberal colleagues want.
      We’re only 135 members short of registering an Affordable Housing Party for the Senate at the election. Would be great if you could join and recruit your friends who have concerns about housing affordability in Australia as well. We want this issue clearly on the ballot paper http://affordable-housing-party.org/join.html

  15. Journalists interviewing Turnbull and Morrision seem to demonstrate piss poor journalism standards compared to a decade or two ago. we are almost getting to Singapore journalism standards. I would have used the opportunity to as Morrison what’s the status of Hockey’s ATO investigation into illegal property purchases by foreign nationals. I am slowly starting to believe the system is so broken to get things changed in this country one might have to be prepared to go to jail.

  16. “We should be wiser and more consistent on tax concessions , in particular tax concessions on superannuation should be carefully pared back. In that framework, negative gearing should be skewed towards new housing so that there is an incentive to add to the housing stock rather than an incentive to speculate on existing property ”
    – Joe Hockey 21 0ct 2015 Final Speech to Parliament.

    • This is actually an interesting insight into the politics of housing. Free from party room constraints, Hockey said what is being advised behind closed doors and in his farewell speach ignores what is politically expedient. Make you wonder how much advice is being jettisoned to maintain a politically palletable position.

      • He’ll never tell, gravy trains too good. That’s the only insight we’ll ever get to see.

  17. Bloody hell. I clean my local Bunnings, and i was warned that it would be busy today, but I couldn’t have prepared myself for the onslaught. Come 1pm it was wall to wall people. Thankfully I had almost finished, but I could barely move around. Not a fun experience for someone with social anxiety issues.

    But yeah, if these people are worried about their jobs or house prices they weren’t showing it today (and I live in a low socioeconomic area). It was nuts.

    • Wealthy or not, those folk can afford to spend up big. They are enhancing the value of the only Aussie investment that matters.

      They’ll get it all back with interest.

    • Mrs Nut went to Bunnings here in Canberra for a bit of paint to finish off a couple of half done jobs and said the place was nuts. Went there yesterday to pick up a couple of odds and ends and was quiet. WTF was special about today? (ANZAC Day aside)

  18. JOURNALIST: Mr Turnbull why has it taken you so long to rule out any changes? Labor’s measures have been on the table since February.

    PRIME MINISTER: That’s because we still didn’t know what our policy was at that time. When Labor released their measures we were still in the process of auctioning off our policy to the highest bidder as per standard party protocols. There were some fairly lucrative offers being phoned in from Beijing and Shanghai; the complications of which extended the auction a bit longer than we had originally anticipated. But make no mistake here. If there’s one thing our party supports, it is that national policy should be decided by the wisdom of free markets.

    • GunnamattaMEMBER

      …..If there is one thing the Liberal party supports it is that national policy be determined by the wisdom of the markets – ESPECIALLY WHEN THAT WISDOM IS UNDERPINNED BY POLICY TO DISTORT THAT MARKET BY ENABLING THE WEALTHIEST 10 % OF THE POPULATION TO GET 50% OF THE INCOME WRITE DOWN BENEFIT WHILE ENCOURAGING TAXPAYER SUBSIDISED SPECULATION

      • BoomToBustMEMBER

        If memory serves me Alan Greenspan was a big supporter of the “free market” and in the end he admitted it was a failure. Yet the Libs seem to hold onto the idea. Probably because it benefits their benefactors.

      • BTB…

        A brilliant allegory imo – “The Democratic Party is a fundraising machine which exists to provide a source of income for professional “political consultants”. It does not seek to implement policies, or even to win elections, unless that contributes in some way to fundraising.” – Propertius

        Disheveled Marsupial… applicable to the duopoly imo…

    • proofreadersMEMBER

      And Turnbott may well be able to soon demonstrate yet again that Coalition policy commitment is rock solid, if the sale of the S Kidman rural properties to Chinese interests is approved.

      • TailorTrashMEMBER

        And he will sign away 2% of the land mass of Australia when he does ………..but foreign investment is good …….!!! ……and when we don’t own the land we will find out that any investment on it will be of little benefit to us in the longer term ………………..gold ….gold ….gold for straya !!

  19. TailorTrashMEMBER

    I love the smell of negative gearing in the morning …………..smells like victory !! ……………………go for it Bill …………build your election campaign around housing ……after all it’s now the entire economy stupid ……!! .

  20. TailorTrashMEMBER

    And comment on this weeks artwork ……..how fitting that the ANZAC has removed his hat in such respectful repose on this most sacred of Australian days ……..a man with the quiet good manners of his time indeed …we could all learn from him ….

  21. gballardMEMBER

    Turnbull sprouting “Wisdom of the Markets” reminds me of the crap Alan Greenspan spewed forth
    Greenspan was a devotee of the self regulating rational market as reflected in an address he made in 1999: “But bubbles generally are perceptible only after the fact. To spot a bubble in advance requires a judgment that hundreds of thousands of informed investors have it all wrong.” (Testimony of Chairman Alan Greenspan Before the Joint Economic Committee, U.S. Congress, June 1999)

    In later years Greenspan admitted his free-market ideology had failed, saying in a Congressional testimony on October 23, 2008 “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”

    Rep. Henry Waxman (D-CA) pressed the former Fed chairman to clarify his words. “In other words, you found that your view of the world, your ideology, was not right, it was not working,” Mr. Waxman said.

    “Absolutely, precisely,” Mr. Greenspan replied. “You know, that’s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well.” (“Greenspan’s Mea Culpa”. The New York Times, October 23, 2008).

    Still what do you expect from our PM when his Treasurer worked for the Property Council of Australia prior to becoming a politician?

  22. proofreadersMEMBER

    As for Turnbott and ScoMo, we (the great unwashed) are just like sheep to be herded to …

  23. Never voted Labour in my life, but seeing that smug Turnbullshit protect all the vested interests makes me sick…sick enough to vote for Labour, in the hope they will actually follow through with their negative gearing policies.

    • Vote for us instead. We’re only 135 members short of registering an Affordable Housing Party for the Senate at the election. Would be great if you could join and recruit your friends who have concerns about housing affordability in Australia as well. We want this issue clearly on the ballot paper http://affordable-housing-party.org/join.html

  24. CharlieChaplin

    Wow! The way that journalist took it to the PM. Utterly relentless!!!! Such a pit bull!!’

  25. All Turdbull and SlowMo have done is outsource the housing affordability problem to the states just like the slimly little prick tried to do with education. Land release, development approvals etc is a State responsibility and tax Federal.

  26. “Mr Turnbull and Mr Morrison were asked several times at the announcement if the government had done any modelling to support its claims about Labor’s policy.
    Mr Morrison dismissed the questions, saying it was up to Labor to defend its policy because it was the party seeking to make changes.”

    So one side gets to lie, deceive, and generally twist the policy as they see fit, but it’s up to the other side to defend it. Any chance of getting some actual adults in charge?

    Dumb as a box of hammers.

    • To be fair, the ALP haven’t released any of their own modelling on their policy. At the moment, they are asking us to suspend belief and accept that their policy will not make property prices fall (or shares I guess given that it applies to shares as well) but somehow magically make it more affordable.

  27. So many negative postings.

    Not fair.. not fair… govm’t doesn’t do this… govm’t doesn’t do that.. some have it and some don’t.. not right.. must be fixed.

    Well get used to it – it’s the way it is. What we really need is a lot less Govm’t to complain about.

    BTW Negative Gearing is yesterdays headline – the market has turned. The recent gearers will suffer. Hope it’s not your kids – or you.

    And for those who think the USA is a better place to be – I worked in tech there and you get taxed as much as here, state, federal and social security – and if I had owned a home (local tax – pays for police etc) it would have been more.

    Tax take might be similar but there’s less chance of being shot here – and the beaches are better.

  28. Hey everyone. We’re only 135 members short of registering an Affordable Housing Party for the Senate at the election. Would be great if you could join and recruit your friends who have concerns about housing affordability in Australia as well. We want this issue clearly on the ballot paper and to be the defining issue of the campaign http://affordable-housing-party.org/join.html

  29. I have posted this once before, I will post it again, war is not about “FREEDOM”, it is not HELL. It is BIG BUSINESS

    “Dress it as we may, feather it, daub it with gold, huzza it, and sing swaggering
    songs about it, what is war, nine times out of ten, but murder in uniform?”

    – Douglas Jerrold

    “At the age of a hundred and eleven, Harry Patch, the last surviving soldier from World War One, gave strict instructions for his funeral: “There should be no weapons on display”.

    On his last visit to Flanders “to remember his pals” Harry had said that war was “calculated slaughter” and that the dead were “victims of governments” and that the “war wasn’t worth one life”….

    When aged 109, Harry had mischievously suggested in his crow-like, West Country life-rattle of a voice that he’d give the Presidents of quarreling countries “a bullet each for each of the fools to fight it out alone.”

    The last living witness to the war to end all wars would stoutly declare that he’d no time for “thieving politicians’ lies”.

    ‘Dulce et decorum est…’ Harry doggedly nailed the warmonger’s vampire fib, that great lie which so stubbornly refuses to give up the ghost and die. Harry Patch was able to give the vain glory of “dying for your country” a more derisive snort than even Wilfred Owen managed….

    The last hero undermined all wars’ empty heroics with every breath he took by deriding the fond fairy stories about how noble it is for a fresh-faced boy to flush his life down a muddy toilet of a trench while he’s screeching and bleeding and howling with horror as he’s thwacked again and again by flying lumps of burning metal so that, as all the opportunistic liars and the well-respected stately madmen, so ritually claim, “others might be free”.”

    http://internationaltimes.it/harry-patch-war-hero/

    “I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.”
    -Smedley Butler

    “Wall St planned to overthrow FDR in 1933 using a retired Marine Corps general and two time Medal of Honor recipient to lead a Brownshirt like army of WWI veterans into Washington- the man they asked to lead it, Smedley Darlington Butler, a son of Penn. Quakers- turned the plotters in to Congress.”
    http://www.theguardian.com/world/2004/sep/25/usa.secondworldwar
    http://www.counterpunch.org/2011/12/02/wall-streets-failed-1934-coup/
    http://www.salon.com/2014/04/18/the_plot_to_overthrow_fdr_how_the_new_deal_sent_conservatives_into_a_rage_partner/

  30. ErmingtonPlumbingMEMBER

    Instead of a “Brownshirt like army of WWI veterans” Wallstreet can just turn to all of those military drones to force what they want.
    They can reprogram those flash trade computers to fly em and kill all noninvestors.