Budget 2007 - what do YOU want from it?

[son of baglimit]

last year i started a forum asking for input from contributors asking.....what they wanted to see in the upcoming budget. well that time is fast approaching, and so again i ask for comment.

whats on YOUR wish list ?

whats a REALISTIC and ACHIEVABLE positive for you ?
(you meaning as an individual or a family - whoever you are investing for.)

what do you EXPECT from the budget thats good or bad for you ?

 

[son of baglimit]

Re: BUDGET 2007 - what do YOU want from it ?

here's the link to last year:

https://www.aussiestockforums.com/forums/showthread.php?t=3334

 

[astroboydivx]

The Treasurer will need to please us using delayed gratification rather than upfront payments. Upfront payments, whether they be immediate tax cuts or baby bonuses etc, will stimulate an already stretched economy and lead to higher interest rates due to inflation.

Costello is going to have to look at pleasing us through delayed gratification - a cutting of superannuation taxes on entry (last year it was on exit), a cut in capital gains tax for investments held longer than 5 years, more money into the future fund etc.

However it's also an election year so there will be big infrastructure annoucements, probably regarding the Pacific Highway, SE Queensland road networks etc.

I wonder what they have up their sleeve regarding education and the environment...

 

[doctorj]

I don't want to see another penny go into the future fund. It's a fund to pay government employee's superannuation - defined benefit liabilities that no business worth its salt have offered for years. Companies have, for the most part, managed to successfully buy out their defined benefit liabilities and roll those members over to a defined contribution (and in doing so shift the risk from employer to employee). Why hasn't/can't the government do the same? How do they get away with persisting with it?

I'd love to see the future fund's funds go towards a piece of income generating infrastructure for the good of all Australians (considering they are our tax dollars after all) - something like Labor's broadband plan would be great but not without its challenges. Build the infrastructure, retain ownership within the fund and charge Telstra, Optus and all the wannabe telcos to have access to it.

Back on topic now though. I liked the suggestion of the 5yr CGT discount, but I would have it restricted to neutral or income generating investments only, ruling out all those tax payers that get other tax payers to foot their bills through negative gearing from having access to even more benefits. This would make investment in items that produce an economic benefit more attractive and help reduce the tax burden on us all.

I'd also like to see more money given to R&D and education. As Paul Keating said, [SIZE=-1]we can no longer afford to be the[/SIZE] lucky country, we have to become the smart country. Things should be put into place to encourage a culture of invention and innovation and there needs to be a process put in place to aid people commercialise ideas and if possible keep them (atleast in part) under Australian ownership - if Aussie tax payer dollars go to help develop them, Australia should reap some of the benefits of the end product.

Ultimately I'd love to see tax law simplified from the behemoth it is down to a few simple ideas. This should help reduce the cost of collecting tax so they can charge less to begin with. All tax does is shift the decision to spend a dollar from the people/companies to the government which is more-often-than-not much less efficient at allocating capital. I understand this isn't likely this budget, or even under this government.
[SIZE=-1] [/SIZE]

 

[numbercruncher]

Id like to see big capital injections into Enviromental projects,Water and Alternative Energy.

Id like to see the over inflated Realestate market punished, 10pc Interest rates would be fine thanks Mr Costello.

 

[wayneL]

I'm an unhappy customer; I want my money back.

 

[billhill]

Certainly would like to see more go to the environment. Also would like to see more spending in the areas of health and education. Would rather these then any tax cuts. Also wouldn't mind seeing a drop in the company tax rate.

 

[macca]

Indexation of income tax levels.

An Ozzie wide school syllabus, (in budget as would have to bribe the stupid states)

Ozzie wide water control of all interstate watercourses ( in the budget as would have to continue to bribe stupid states)

Funding for referendum at next election for republic, Q : do you want Oz to be a republic (Yes or No, no trick questions )

 

[bel532]

I don't want to see another penny go into the future fund. It's a fund to pay government employee's superannuation - defined benefit liabilities that no business worth its salt have offered for years. Companies have, for the most part, managed to successfully buy out their defined benefit liabilities and roll those members over to a defined contribution (and in doing so shift the risk from employer to employee). Why hasn't/can't the government do the same? How do they get away with persisting with it?

I'd love to see the future fund's funds go towards a piece of income generating infrastructure for the good of all Australians (considering they are our tax dollars after all) - something like Labor's broadband plan would be great but not without its challenges. Build the infrastructure, retain ownership within the fund and charge Telstra, Optus and all the wannabe telcos to have access to it.

Back on topic now though. I liked the suggestion of the 5yr CGT discount, but I would have it restricted to neutral or income generating investments only, ruling out all those tax payers that get other tax payers to foot their bills through negative gearing from having access to even more benefits. This would make investment in items that produce an economic benefit more attractive and help reduce the tax burden on us all.

I'd also like to see more money given to R&D and education. As Paul Keating said, [SIZE=-1]we can no longer afford to be the[/SIZE] lucky country, we have to become the smart country. Things should be put into place to encourage a culture of invention and innovation and there needs to be a process put in place to aid people commercialise ideas and if possible keep them (atleast in part) under Australian ownership - if Aussie tax payer dollars go to help develop them, Australia should reap some of the benefits of the end product.

Ultimately I'd love to see tax law simplified from the behemoth it is down to a few simple ideas. This should help reduce the cost of collecting tax so they can charge less to begin with. All tax does is shift the decision to spend a dollar from the people/companies to the government which is more-often-than-not much less efficient at allocating capital. I understand this isn't likely this budget, or even under this government.
[SIZE=-1] [/SIZE]

I agree. I could never understand why public servants receive such a largesse that is not given to the public at large, except that, maybe, it ties in with the very generous super scheme enjoyed by the pollies. Although I have a vague recollection that Latham, during one of his brief lucid periods, forced the Federal Government to reduce these benefits for new members, but NOT for public servants. Why didn't they do both and why should they enjoy such benefits, at the public's expense, that are not available to the public at large?

Footnote. I understand that some of the large National companies also provided their employees with the benefit of an Unfunded Super scheme, but I dion't know if they still exist.

 

[bel532]

last year i started a forum asking for input from contributors asking.....what they wanted to see in the upcoming budget. well that time is fast approaching, and so again i ask for comment.

whats on YOUR wish list ?

whats a REALISTIC and ACHIEVABLE positive for you ?
(you meaning as an individual or a family - whoever you are investing for.)

what do you EXPECT from the budget thats good or bad for you ?

Tax cuts, and more tax cuts!

 

[clowboy]

I'm an unhappy customer; I want my money back.

LOL.

Sounds good

 

[Odduna]

Proper tax reform is required in Australia, but it wont happen in an election year.

The future fund: if people like it or not, the liability will need to be paid.
Small bits each year is probably better. But the government is trying to put big amounts in now so the amount can be invested so less taxes have to go in paying it out later on. Pretty much what James Hardie did with the compensation fund. Get the charity to be tax free status, put a smaller amount into fund and hope the investment returns pay the liability.

Note: i dont think the defined benefit fund for CSS and PSS is open to new employess since around 1 July 2005 or was it 2006.

To do a change over from the defined benefit fund to accumlation fund, the government will need the money to buy the public servants out. But i understand from their announcment back in 2005 they were looking into situation.

Anyway, enough said...
Fingers crossed for a wise and prudent budget.

 

[Julia]

Water infrastructure
Water infrastructure
Water infrastructure

Political will to act for the good of the people instead of personal self-aggrandisement.

I won't be holding my breath on either count.

 

[chops_a_must]

Water infrastructure
Water infrastructure
Water infrastructure

But then you have to put up with country bumpkins and hicks complaining that "you've stolen my water" etc. etc.

 

[bean]

Originally Posted by doctorj
I don't want to see another penny go into the future fund. It's a fund to pay government employee's superannuation - defined benefit liabilities that no business worth its salt have offered for years. Companies have, for the most part, managed to successfully buy out their defined benefit liabilities and roll those members over to a defined contribution (and in doing so shift the risk from employer to employee). Why hasn't/can't the government do the same? How do they get away with persisting with it

Now if a private company did not put money into pay for super for its employees would they be breaking any laws....

 

[billhill]

Political will to act for the good of the people instead of personal self-aggrandisement.

Maybe we could swap howard for someone like bono or al gore. If only this was an ideal world.....

 

[doctorj]

Maybe we could swap howard for someone like bono or al gore. If only this was an ideal world.....

I couldn't think of too many scarier ideas...

 

[billhill]

I couldn't think of too many scarier ideas...

LOL

 

[chops_a_must]

Maybe we could swap howard for someone like bono or al gore. If only this was an ideal world.....

Yeah, I doubt Bono would ever live here, he'd have to pay tax...

 

[son of baglimit]

less then a week to go and the usual pre-election assumptions are coming out - lower tax rates for middle australia (abolition of the 40% rate), increased family tax benefits, deductions or greater flexibility for child care expenses etc etc etc

nothing hinted for infrastructure spending, as many would like to see, but with a perceived labour shortage and benefits from such projects always years away, no pre-election govt would dream of such spending - it doesnt win enough votes.

probably some more money plonked into the future fund, with warnings of what the greedy lefties would do if they ever got their fingers on it, but primarily it will be another 'family friendly' budget

so come on australia - keep breeding - to hell with the capacity to cope.