The ScoMo Government

[Smurf1976]

I hear there might be cheap units at the Opal Tower

Opals are found in the ground and people who mine them also tend to live underground.

Opal is also the name for a petrol substitute used in communities where sniffing has been a problem. It's low octane but it runs the engine. Benefit is people can't really sniff it apparently so that's why it's used.

So putting that together we've got something that's highly flammable, not very strong and found underground. Probably not the best choice of name for a skyscraper.....

 

[Knobby22]

Someone has to reverse it, or at least slow it, especially over East. Otherwise the building industry will fall on its rear end. Then we will see some unemployment.
Just my opinion.

Yes, even Joe Hockey had a few plans he would have used if he had of served under another Prime Minister.

 

[wayneL]

The party has moved right, or at least more in line with the U.S. conservatives. It will take many years or a split imo sptrawler. It has happened before. That was when Menzies ended up starting the Liberal Party.

Notwithstanding an ideological chasm (which exists in every party) in what way is this party right wing?

 

[Knobby22]

Compared to the USA, not at all. Free healthcare, progressive taxation system, money for infrastructure.
Would be considered socialist. The British Conservatives are similar.

 

[SirRumpole]

Notwithstanding an ideological chasm (which exists in every party) in what way is this party right wing?

They value big business more than the individual. They had to be dragged kicking and screaming into holding a banking royal commission and they would rather give tax cuts to businesses instead of individuals.

 

[ianna]

I'm not an economist so please don't be too hard on me. But following on from SR's post I have long wondered if rather than giving tax cuts to business or individuals that probable don't really need it a good way to stimulate the economy would be too give more money to old age pensioners. Perhaps not those on part pensions but those on full pensions. If they were to get more money they wouldn't save it for their next overseas jaunt but spend it all perhaps on the grandkids or buying food or replacing the old fridge or washer. Just a thought.

 

[Toyota Lexcen]

home care package?
pension loans scheme?

 

[sptrawler]

I'm not an economist so please don't be too hard on me. But following on from SR's post I have long wondered if rather than giving tax cuts to business or individuals that probable don't really need it a good way to stimulate the economy would be too give more money to old age pensioners. Perhaps not those on part pensions but those on full pensions. If they were to get more money they wouldn't save it for their next overseas jaunt but spend it all perhaps on the grandkids or buying food or replacing the old fridge or washer. Just a thought.

IMO it is a good point, however at the moment Australia's welfare costs are increasing exponentially, this is due to an aging population.
So the issue becomes how to fund it, one school of thought believes making businesses more profitable, makes more start up and existing ones expand which in turn creates jobs, therefore more tax comes in.
The other school of thought is give people a tax cut, this improves peoples spending power, which in turn leads to more gst and more jobs as the businesses expand to accommodate more turnover.
So it becomes a bit of a chicken and egg situation, which comes first?
It is obviously a lot more complicated than that, but it is just my take on it.
The main thing to remember is, unless we are selling something to overseas, we are just taking money from one section of the economy to give it to another section. Which is just churn.

 

[basilio]

The other school of thought is give people a tax cut, this improves peoples spending power, which in turn leads to more gst and more jobs as the businesses expand to accommodate more turnover.

This is one approach.. How would you pay for these tax cuts ? Traditionally it has been done by cutting social security benefits, health or education programs. This redistributes money from the poorer parts of the community to the more well off. If the tax cuts are targeted at the top end of the scale it manages to bypass the lower working class/middle class sections as well.

 

[SirRumpole]

I'm not an economist so please don't be too hard on me. But following on from SR's post I have long wondered if rather than giving tax cuts to business or individuals that probable don't really need it a good way to stimulate the economy would be too give more money to old age pensioners. Perhaps not those on part pensions but those on full pensions. If they were to get more money they wouldn't save it for their next overseas jaunt but spend it all perhaps on the grandkids or buying food or replacing the old fridge or washer. Just a thought.

Giving money to people who don't have their needs satisfied results in more money going into the economy as spending as pensioners or other low income earners try to raise their living standard, so yes it's a good idea if its affordable.

 

[sptrawler]

If the tax cuts are targeted at the top end of the scale it manages to bypass the lower working class/middle class sections as well.

With a progressive tax system, if you give a tax cut to the bottom scale, of course those on higher tax scales get it. How else can it work?
To explain:
If you are on $100,000, and the first $40,000 is taxed at 20%, then the $60,000 earned above that is taxed at 50%.
If you drop the bottom tax rate to 10%, the persons first $40,000 is taxed less.
How can you avoid that, the only way is to INCREASE the tax rate on higher income scales, or move the tax thresholds.

 

[Humid]

How about reigning in politicians perks like their super.
I usually get the peanuts and monkeys spiel and think we already have the monkeys running the place.

 

[wayneL]

They value big business more than the individual. They had to be dragged kicking and screaming into holding a banking royal commission and they would rather give tax cuts to businesses instead of individuals.

That ideology I would call corporatist, rather than right. Right wing ideology is more individualist

 

[sptrawler]

How about reigning in politicians perks like their super.
I usually get the peanuts and monkeys spiel and think we already have the monkeys running the place.

I think the politicians super has been reigned in, from the ridiculous situation that existed, only the long term ones still qualify for the old system.
No doubt what replaced it, is probably still a hell of a lot better, than what us plebs get.

 

[PZ99]

I'm not an economist so please don't be too hard on me. But following on from SR's post I have long wondered if rather than giving tax cuts to business or individuals that probable don't really need it a good way to stimulate the economy would be too give more money to old age pensioners. Perhaps not those on part pensions but those on full pensions. If they were to get more money they wouldn't save it for their next overseas jaunt but spend it all perhaps on the grandkids or buying food or replacing the old fridge or washer. Just a thought.

If the pension is too generous more people will be drawn to it so it'll break the budget.
That will then force Govts to raise taxes or increase the pension age and/or preservation age.

Tax cuts to small business is paramount IMO - otherwise wages will be attacked permanently.

 

[Junior]

If the pension is too generous more people will be drawn to it so it'll break the budget.
That will then force Govts to raise taxes or increase the pension age and/or preservation age.

Tax cuts to small business is paramount IMO - otherwise wages will be attacked permanently.

Agreed. Australia is becoming increasingly tough to do business with high cost of labour and taxes.

Look to Silicon Valley in the US.....we need to encourage growth industries, startup & small business. Our recent boom industries have been primarily "dumb" & unsustainable, i.e. dig up iron ore & coal and ship to China, build new housing on the back of easy lending and low IR.

 

[Humid]

I think the politicians super has been reigned in, from the ridiculous situation that existed, only the long term ones still qualify for the old system.
No doubt what replaced it, is probably still a hell of a lot better, than what us plebs get.

Yeah about 50% more and on their total salary I think not on base like me in construction

 

[sptrawler]

If the pension is too generous more people will be drawn to it so it'll break the budget.
That will then force Govts to raise taxes or increase the pension age and/or preservation age.

Tax cuts to small business is paramount IMO - otherwise wages will be attacked permanently.

You are spot on, the pension for a married couple is about $35,500 + cheap medicine+ cheap council rates+cheap utilities+cheap vehicle licensing+ cheap government charges.

The going rate for SMSF term deposits is 2.8%, so on $1m $28,000 + non of the above.
It beats me why someone would try and put together $1m, to be self funded.

If they put together $300,000 and put it in a term deposit, they get $8,400.
So that is $35,500 government pension(indexed)+$8,400+ all of the above.
So that is $43,900+ all the perks.
It really is a no brainer.

So what is silly Billy going to do, take the franking credit of the self funded pensioners, that are using shares, to try and stay ahead of the Government pension, priceless just priceless.
I don't know what the end game is, but it doesn't include people who invest, to be independent. lol
Lets say the perks are worth $6,000/annum, so we have round figures.
How much do you require invested, to get $50,000 per year which is indexed automatically and doesn't suffer market corrections? as opposed to the Government pension that only requires a $300,000 initial investment.

 

[Humid]

So tell me how cutting penalty rates and giving businesses tax cuts going to give the average pleb a self funding retirement

 

[Humid]

At 9.5%