PwC: Choosing land tax over stamp duty could save $10k

By Leith van Onselen Modelling by PwC suggests that allowing home buyers to pay land tax rather than stamp duty could generate significant savings. PwC estimates that home buyers in NSW could save around $10,000 over the life of a 45-year mortgage by electing to pay land tax rather than stamp duty. PwC has proposed

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Why Australian fundies are failing dismally

Via the AFR: Australia’s most successful and well-known stock pickers are under pressure as active managers fail to perform and investors opt for the safety and certainty of passively managed index funds. More than three-quarters of active large cap equity funds in Australia underperformed the indices they are measured against in calendar 2016, according to S&P


Panic, print and slash migrants

Via AFR today: Australia should halve immigration and undertake a massive transport infrastructure program funded with money effectively “created” by the Reserve Bank of Australia, says former NSW Treasury secretary Percy Allan. …He proposes having the federal government immediately slash skilled immigration from around 190,000 a year to 90,000, cooling annual population growth to 1


Greens’ immigration policy to create giant enviro-stomping Australia

By Leith van Onselen On Friday, I labelled The Greens a fake environmental party because of their support for mass immigration and a ‘Big Australia’. My growing frustration about The Greens has come about because for nearly 20 years they have failed to utter a word in protest as the federal government, under both the


Missing the point on corruption

On Friday 28th April I am appearing and Queensland’s Crime and Corruption Commission’s Operation Belcarra as an expert witness on relationships between councillors and property developers, and how that leads to favouritism. A narrow focus What is interesting from my perspective is how narrow the focus of the inquiry really is. Here are the main


Frydensolar capitulates as gas crisis to deepen

Yes, we are run by idiots: Federal Energy Minister Josh Frydenberg has backed the development of solar thermal technology in Australia despite warnings it might not be commercially viable until 2040. The Turnbull government has promised to fast track the tender process for the country’s first solar thermal project in Port Augusta and commit $110 million


Links 26 April 2017

Global Macro / Markets / Investing: Markets set to continue the Macron rally – CMC Markets Short Seller Says Home Capital Needs to ’Clean House’ – Bloomberg The Electric Car Revolution Now Faces Its Biggest Test – Bloomberg A Tidal Wave is Coming – The Irrelevant Investor Has there been a sea change in the way banks respond to


Anzac Day Links 25 April 2017

Global Macro / Markets / Investing: The persistent headache of sluggish investment – VOX Bloomberg to world leaders: Ignore Trump on climate – AP Euro Hits Five-Month High on French Election – WSJ Dow futures soar nearly 200 points as markets get what they expected in Le Pen, Macron victories – CNBC Whatever the IMF thinks, we are a


Macro Afternoon

by Chris Becker What a way to start the week with the French election over the weekend causing risk markets to jump higher on the Monday morning gap and hold on to most of the gains through the Asian session. It will be a busy week with the BOJ and ECB meeting later in the week,


Population ponzi crush-loads V/Line trains

By Leith van Onselen Remember this chart? It shows that Victoria’s population surged by an all-time high 127,500 people in the year to September 2016: And remember how the Liberal opposition pledged to shift Melbourne’s population growth to Victoria’s regions in a bid to take pressure off both housing and infrastructure in Melbourne? Well, it


Where to invest once property tops

Via the AFR: Australia’s housing market may be at its peak in this cycle, according to some experts, and investors might be wondering whether they should look for alternative places to put their money. With four of the top twenty Australian companies trading at discounts to their long-run averages, the top tier of the stockmarket


Gotti upset as two people fly home on busted 457s

From doddering Gotti today: The federal government’s clamp down on overseas workers and the emotional rhetoric that goes with it has improved its voter appeal as measured in the polls. But unless immigration minister Peter Dutton gets the detail right, it will backfire dramatically and cost far more jobs than it generates. …In the detail


Mass immigration has cooked the economy’s books

By Leith van Onselen The ABC’s business editor, Ian Verrender, has penned a great piece today on how Australia’s mass immigration program has created the illusion of economic growth, while individual living standards are being eroded: Sometime in the next few weeks, there will be jubilation in the halls of Canberra when Australia assumes the


Chinese steel entering “zugzwang” calamity

Via Bloomberg: “We’re going from one world to another,” Peter Marcus, founder and managing partner of U.S. consultancy World Steel Dynamics, said in an interview in Shanghai. “We’re going to have mercantilism that’s going to promote domestic industries. The U.S. is going to win, and China is going to lose.” Prices in China could return


Iron ore opens, crashes

While global markets party on the rise of Emmanuel Macron in France, Dalian has opened and immediately shed the good spirits as iron ore and coking coal futures tank: Big Iron is dutifully down: Big Oil is up despite the oil pounding, fishing for a low: Big Gold is mixed: Big Debt is enjoying the


Trump-Australia propaganda flows

A river of drivel today surrounding Vice-President Mike Pence’s Aussie visit. Grovelling central is the AFR: US President Donald Trump’s “massive” tax reduction plan, details of which are expected on Thursday, will have direct benefits for Australia, Vice-President Mike Pence says. He met privately with the chief executives of Westfield, Macquarie Group, Lendlease and Austral


Macquarie’s Chinese steel sentiment survey crashes

From Macquarie: Most recent survey result gives the short signal The most recent reading of the steel survey released by Macq’s commodities team shows a sharp deterioration in both sentiment and orders – sentiment dropped to 38 from 80 just two months ago, and the order index, while higher than sentiment, is below 50 which


British power logs first ever coal-free day

Via The Guardian: Friday was Britain’s first ever working day without coal power since the Industrial Revolution, according to the National Grid. The control room tweeted the milestone on Friday. It is the first continuous 24-hour coal-free period for Britain since use of the fossil fuel began. West Burton 1 power station, the only coal-fired