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- 21 June 2009
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Trainspotter, you are quite wrong. The family home is not included in means testing.Ummmmm ... being a self funded retiree then you would fully well know that IT IS MEANS TESTED. If you have enough to purchase a 10 million $ property it is UNLIKELY you will get the pension. (where did this figure come from by the way?) The sum of 2 million was bandied around by the boffins who want more tax.
The system that we have in place for the principle place of residence is ADEQUATE. No need to threshold tax it because you can afford to live in a house that is larger than the rest. More than likely the b@stard who can afford this kind of home has been paying taxes through the nose for bloody years. I say he deserves the damn thing. JEEEEEEEEEZUZ !!
Yet another ALP/Rudd bashing threadbring on the double dissolution i say.
If i had a 2 million dollar house i wouldn't be complaining about any new taxes, and genuinely struggle to understand how anyone potentially suffering from this new proposed tax could or would have a problem with it.
Have money = pay tax
If those who are fortunate to own or have a property worth more than $2million should be taxed more - obviously to fund the big spending pork barrelling of people like the likes of you, then how about a thank you when more of my taxes are taken to fund your baby bonus', $900 jollies to going shopping with etc, child care rebates, and your weekly ‘training’ money, aka the dole! As my first posting said, I don’t have nor could I afford a $2million home – unlike many of your ALP mates, however I do happen to earn a little more than $100k and I find it pretty bloody offensive to say I am ‘rich’.
... but I would be in favour of including that part of the value of the family home which is over $1 million in the means test for the government pension.
No reason why tax payers should be funding a full pension for people who are hiding their wealth in non-assessable asset.
Stocks, if you earn a little more than $100k as you say, then you too are entitled to baby bonus, child care rebates and family tax benefit. Although you need children to do that. Which means meeting a women (assuming you are male). Which might be difficult given your rabid right wing views.
Sorry Julie, I have cut some of what you said, yet I do happen agree with the pension part, although not part of my org. post, I do happen to agree with peoples comments on the value of a home being included.
I would love to know the real figures for people who are buying such an asset to then claim - I agree with trainspotter et al that I couldnt see the worth in doing something like this. A dead asset, which you couldnt use as cash then claim a pension to, I guess, buy the PAL to have on toast each night, seems like an odd-ball thing to do.
However, that said, the home should be included in the pension, yet where does this end - in real terms. It is not included in unemployment benefit - as far as I know, so if I own a $1million+ home should I have to sell that because I am asset rich and money poor and exhaust that money before claiming the dole?
Stocks
Fair comment on unemployment benefit. It does seem a bit harsh to get people to sell up their house to get unemployment benefits. For the old age pension though, reverse mortgages provide a means to access some of the wealth (younger unemployed do not have this ability), so it is not necessary to sell up. If PPOR is included in the pension means test, the government could also consider a scheme whereby it takes a % stake in the house in return for a pension.
The thing is the Government has to generate much more income, the welfare budget is expanding, there is now a massive debt that needs repaying etc If they want to stay in power they need to keep the populist vote
news.com.au said:FEDERAL Treasurer Wayne Swan has denied reports saying the Government is considering slapping a tax on some of the country's most expensive homes.
The Weekend Australian newspaper says the Government has asked Treasury to model various capital gains tax scenarios on homes valued at $2 million or more.
However, a statement released by Mr Swan this morning said any claims the Government was considering such moves was “factually incorrect”.
“There has been no request from the Government to the Australia's Future Tax System review to model such proposals,” the statement said.
“We are advised that no such modelling is being carried out by the review, and therefore no recommendation of this sort will be made to us by the panel.”
The Government is not considering and “will not” consider the policy outlined in the report.
“There will be thousands of stories between now and when the final report is released and unfortunately, like this one today, many of them will be incorrect.”
The Government's tax review is expected to be concluded by the end of the year.
Daylight robbery comes to mind as an 18th century equivalent.If they introduced this I could see all sorts off bizarre sales/rental practices occuring to try to circumvent the tax as well.
Trainspotter was more accurate than you think there are 100s of thousands of people in the position he mentioned above and will continue to be in the future these people were hard working average people.
Now with the “so called rich”??????????
Keep in mind the people that have bought the large 2 mill plus houses in resent times; have also paid massive stamp duty.
The rich would have been in the highest tax bracket in regards to income, are they really happy for the rich! To negative gear their own home wow lets buy bigger and more fantastic homes lets do that no need to go the investment property way. Why bother with tenants they are painful anyway, history repeats lack of housing government will have to start building housing again cost to the tax payer billions
What about luxury tax for their car they have bought
What about the very high rates to councils.
What about the taxes on insurances
Massive school fees for their children and they get no benefits.
They pay high taxes, when they retire they get bugger all from the government. That right is reserved for the useless.
How many times do you want them to bend over and take it? Why do we insist on punishing people for being successful and giving the useless gold medals?
The labour governments came up with superannuation, because the stupid didn’t know how to save for their retirement rather than means testing that, we all got hit with it.
If they want to bring this new tax in it should be right across the board hey why put a 2mil value on let everyone be equal isn’t that what communism is, what’s good for one is good for all. Let’s all eat spuds and wear brown jackets.
Be careful you don’t scare even wealthier people offshore we are already taking most of our industry offshore because of unions and bulling tactics and very high taxes.
Be careful what you wish for
Just having my say in this wonderful free and democratic sociality
Oh this is so funny on so many levels.
Stamp duty on expensive home, insurance tax, private school fees. These are all choices. Cheaper home - less stamp duty, insurance taxes - don't buy insurance, school fees - use the government system. yadda yadda yadda
As for people being too stupid to save for retirement. Well you are sort of right to a certain extent. The reality of a society is that not all of us are smart enough to go to university and become doctors, lawyers and accountants. blah blah blah
And before you accuse of me of putting my hand in your pocket, I have paid loads of tax over the years and my income tax bill for the last six or seven years would have been at least $100k a year. And I pay private health insurance and private pre-school fees. I just happen to believe in an equitable society. I have been to the United States and it was not pretty.
Oh this is so funny on so many levels.
Stamp duty on expensive home, insurance tax, private school fees. These are all choices. Cheaper home - less stamp duty, insurance taxes - don't buy insurance, school fees - use the government system. Oh and the federal government provide massive subsidies to private schools. About time this rort stopped, next you will be wanting a subsidy for buying books instead of using the library or installing a swimming pool instead of using the council pool. As for whingeing about luxury car tax, as I recall this kicks in around $55k. It may surprise you, but you can buy cars below $55k, even some BMW's and Mercedes.
As for people being too stupid to save for retirement. Well you are sort of right to a certain extent. The reality of a society is that not all of us are smart enough to go to university and become doctors, lawyers and accountants. Some people are destined to collect your garbage, deliver your letters, clean your toilets. And you may not have noticed from your ivory tower, but these jobs do not pay very well and these people, through the genetic outcome of not being intelligent , will not earn enough to pay for their retirement. If we want to ensure these people are not thrown on the scrapheap at age 65, then the money needs to come from somewhere. And taxes on multi-million dollar houses and reducing rich people's welfare such as non-means testing PPOR and government subsidies of private schools and health insurance seem fair ways of doing it.
And before you accuse of me of putting my hand in your pocket, I have paid loads of tax over the years and my income tax bill for the last six or seven years would have been at least $100k a year. And I pay private health insurance and private pre-school fees. I just happen to believe in an equitable society. I have been to the United States and it was not pretty.
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