sooner than you would likeFixed income now pricing just one rate cut this year. It used to be perhaps 3, then 2, now we're at 1.
How long before it's 0?
well maybe my memory is a little bit fuzzy , but this time inflation ( if it has been tamed ) has been a bit of a whiny kitten
I think that's the key.all that with data that was a lot less 'massaged ' than it is today
On the street, it feels like inflation is receding. young families with mortgages have tightened their belts, they are spending less on luxury items and services, less weekend trips away, and less spending on maintenance items for home and car.
Small to medium businesses in the service sector have started to drop their pricing because their booking numbers are dropping, and staff are doing less. It won't be long before we see those businesses reducing the hours of their workforce.
The biggest contributor to inflation, at the moment are energy costs which are ridiculous. Inefficient Government taxes like Stamp duty and payroll taxes. Local government rates on housing.
The pain is coming.
Reform GST to abolish stamp duty
Rules for carving up the GST should be overhauled to encourage the states to fix inefficient and unproductive stamp duty rules, newly elected Liberal MP Simon Kennedy says.
In his maiden speech to parliament on Tuesday night, the member for the Sydney seat of Cook said state governments were concerned stamp duty and payroll tax changes would cause them to lose out on goods and services tax revenue from the federal government.
Describing the situation as a handbrake on productivity, Mr Kennedy said sensible reforms would strengthen the national economy and help promote badly needed housing construction.
“Currently, in Australia, states are concerned they are disincentivised from improving productivity,” he said.
“Take stamp duty, a tax on people moving, or payroll tax, a tax on job creation. States are concerned if they remove or replace one of these, that the GST formula could punish them with less federal GST revenue.
“How can we better incentivise states to implement productive reform? Ensuring the Grants Commission will fund, not punish, the states for productive reforms must be part of the answer.
“How can we better incentivise states to build homes? I believe we should force the states and regions to compete for federal infrastructure funding based on housing completions.”
A co-founder of consulting firm McKinsey & Co’s Australian public sector business, Mr Kennedy won the seat of Cook in April, replacing former prime minister Scott Morrison.
The electorate takes in suburbs of Sydney’s Sutherland Shire including Sandringham, San Souci, Caringbah, Cronulla and Lilli Pilli. It has been a blue ribbon Liberal seat since 1975.
He warned small business and individuals were being made to feel small by business and government.
“Because large governments and corporations have never been larger,” he said.
“Large governments and large corporates share similar characteristics. They both believe their size gives them the power and moral authority to tell individuals and families how or what to think.”
Deteriorating state budgets
Describing himself as “a product of middle Australia”, the father of two met his wife Nila while working in Washington.
Mr Kennedy used the speech to warn against deterioration of state budgets.
“Victoria’s rising debt levels should serve as a warning to us all states should not be bailed out of trouble, instead they should be rewarded for productive success,” he said.
“Competition is about performance, and we need better performance at all levels of government. Because improved performance will support middle Australia with more homes, more jobs, more opportunity, and more hope.”
Treasurer Jim Chalmers has ruled out sweeping tax reform or any changes to how GST revenue is carved up by the Commonwealth Grants Commission.
Mr Kennedy said Australia needed more home construction, including to house people arriving as part of record post-pandemic migration. He said the median house price in parts of his electorate was more than $3 million.
“We are at risk of letting down middle Australia on housing. The rhetoric of governments around Australia has been to scream about a housing affordability crisis, which is one that is largely of their own making,” he said.
“Today, in Sydney, up to 50 per cent of the cost of a new house is government – that’s tax, red tape and the planning process. How ridiculous is this?”
He called for the states and territories to compete for federal grant funding based on the release of land for new housing construction.
Mr Kennedy also singled out lacklustre productivity in the economy as an urgent challenge.
“Productivity has been responsible for 80 per cent of the increase in the average Australian’s living standards over the past 30 years,” he said.
“The average American worker produces 25 per cent more than the average Australian. But this is not the fault of the Australian worker.
“This is because successive governments have kicked the ball into the long grass when it comes to unleashing productivity.”
@JohnDe I don't think that Governments of whatever persuasion will give up easily these two cash cows.Inefficient taxes and wasted tax dollars contribute to high inflation. Improved productivity improves inflation and wealth.
“Take stamp duty, a tax on people moving, or payroll tax, a tax on job creation. States are concerned if they remove or replace one of these, that the GST formula could punish them with less federal GST revenue.“Victoria’s rising debt levels should serve as a warning to us all states should not be bailed out of trouble, instead they should be rewarded for productive success,” he said.“Competition is about performance, and we need better performance at all levels of government. Because improved performance will support middle Australia with more homes, more jobs, more opportunity, and more hope.”
Several State taxes were meant to be removed when the GST was introduced, they still haven't been removed, so as you say @farmerge it is highly unlikely.@JohnDe I don't think that Governments of whatever persuasion will give up easily these two cash cows.
Not in a hurry anyway.
Look at how long the banking taxes were left before they were removed.
@sptrawler I think that the best of the best is the Recording Fee that is on our WA vehicle registration paperwork.Several State taxes were meant to be removed when the GST was introduced, they still haven't been removed, so as you say @farmerge it is highly unlikely.
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Remember when I was explaining how the rest of the world is going to be dealing with problems that the americans are almost entirely insulated from/unaffected by?
well the US has heavily sanctioned Russia and in the process of increasing sanctions on China so a growing Russian economy is less likely to trigger increased inflation in the US , and China is buying more and more gold ( silver and copper ) so is less likely to drive US treasury yields down , thus helping insulate the US from currency shocksNo don't remember. give us a clue
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