Australian Politics, Mark II

See the george pell thread concerning religious hypocrisy…lol.

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I get where you’re coming from but yeah they do. E.g. Victoria borrows billions for the new suburban rail loop. That gets capitalised on the balance sheet as an asset while the debt is a liability. The depreciation of that project (over the useful life - which could be 50+ years) is expensed over budgets for the next 50 years.

Na - public accounting is different to business accounting.

In effect they have two parallel accounts. One for operating and one for capital. For a big capital project everything is on the capital account including capex, depreciation, debt, finance repayments etc. None of these figures get included in the surplus/deflect that makes the news.

E.G. debt tapyments for federal government bonds that have been issued to fund recent surplus are included in defeicits. The debt rapyments on the NBN are not.

And if rent goes up, yield increases and people invest in property again.

I’m sorry but I don’t see your point…

There is no real valid reason to distort the property market.

How is it being distorted? I really don’t want to get pulled into this conversation. I can see you have your mind made up. Which is fine.

Investors can claim a tax deduction for interest, owner occupieres can not. Thus the market is distorted in favour of investors. Given interest on a home can be up to 50k per annum (1 mill home) it’s a pretty big advantage. An investor can keep bidding in an auction knowing that they just get a bigger deduction.

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It’s a pretty one sided way to look at it. Owners aren’t drawing a revenue that will be taxed when it becomes profitable. Happy to leave it here though.

I don’t own an investment property by the way. I’m just not envious of people using them to make a dollar. The same rules apply to them as most other investments and businesses.

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Every govt in their last year projects a surplus based on dodgy projections & assumptions, and all the numbers going absolutely through the roof. It rarely, if ever, happens.
The debt has ballooned absolutely out of control since they got in. More than doubled.

I think you over estimate the intelligence of voters, the right leaning voters who would have otherwise voted against them will eat up a surplus with a silver spoon

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People don’t need to live in stocks, futures and shares, though.

They predicted a surplus coming in their last budget, … hasn’t helped them much.

And this won’t even be a budget.

The only thing that will help them is Nat Security and BOAT PEOPLE aggghhhhhh!!!

Which is why Bill had to let those shittie things through in the last hour after being backed into a corner, … they were gagging for it, … as evidenced by Pynes Tweet.

It’s all they’ve got, they know it, and are desperate for it.

Latest Poll has Labor up, Gov going backwards BTW, even after , or perhaps (hopefully) because of their bullshit on that last sitting day.

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Hmmm that’s just bizarre, I’ve never had to deal with public sector reporting…
Regardless of how it’s reported it’s still part of the overall spend of the incumbent Government

As the issuer of a fiat currency, Sovereign debt only becomes an issue if inflation gets out of control. Look at Japan who has insane levels of debt but because they have optimum levels of productivity it isn’t an issue.

No but a lot of people including young families are mortgaged to their ■■■■■■■ eyeballs and your talking about pulling the handbrake on a market that’s already going backwards. Makes a lot of sense.

Lol. My local member.

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More than half the population rent, many because they can’t afford to purchase a place to live. They would feel very differently about the current downturn.

There are always winners and losers in markets. Swings and round abouts.

If a nation is continually borrowing from overseas (a la Australia), they are at the mercy of overseas lenders to keep rolling and increasing those loans. It is a vulnerable approach…Lose the support of lenders, and the AUD could spiral downwards, and inflation would spiral upwards.

Japan is not in this situation. As a whole, they have a long history of cumulated surpluses. That’s why the JPY strengthens during any risk-off event.

The USA is in a similar situation to Australia. It frankly surprises me that the world keeps supporting the spending of the Americans…

WTF? Negative gearing means a situation where expenses exceed income derived on an investment e.g. shares, rental properties.

The family home is exempt from tax - so negative gearing is irrelevant.

The ratio of housing cost to wages is almost 3 times what it was in 1995: and still rising.
Pull off the bandaid. The longer you wait, the worse it gets.

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Anyone who rents property through Air BNB to should not be allowed to claim deductions for repairs and maintenance if they rent to a South Sudanese person.