The state of the economy at the street level
- Thread starter Tyler Durden
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Knobby22
Mmmmmm 2nd breakfast
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Plenty of cranes where I am.
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We need to build the ghettos for the new migrants unless it is the offices for the new businesses ROL
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i thought it was turning empty office/retail space into residential ( or multi-purpose .. aka residential on the upper floors with maybe office or restaurants on the top level
but the 'mega-cities' are liable to turn into ghettos
Knobby22
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North Melbourne, Flemington racecourse. Massive developments.
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Seriously, the only way to put these millions of mostly jobless new arrivals under a roof is high density, euro style high rises..public housing or private corp landlords a la UK 1800'swhich will become without a single doubts ghettos..but any other choice?
Knobby22
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Look pretty nice to me.
A lot of the new arrivals are wealthy. Particularly the Chinese.
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I seriously doubt that, maybe the ones you see in your posh area?
I would be surprised if we , in Australia, are different from everywhere else, especially in a country where the escalator is stopped , no industry left and no real labour shortage due to lack of population able to fulfill them
Knobby22
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Australia | Wealth Migration 2024
Australia consistently ranks among the world’s top destinations for private wealth migration. Read more about makes Australia an attractive choice.
www.henleyglobal.com
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600,000 of them a year ? ....Australia | Wealth Migration 2024
Australia consistently ranks among the world’s top destinations for private wealth migration. Read more about makes Australia an attractive choice.
We live sheltered lives, myself included ... our cafe waitresses and baristas are not going to buy these rooftop condos but sharing these 2 or 3 bedrooms units.
The GDP figures give you the factual answer..more people same pie value with 8% inflation..mass misery importing....
Sure you can have a few chinese or indian billionaires wanting to have their assets seize here but these are not the numbers
Anyway, this is what it is, Australia still has democracy so the choice of the many.
And in a way good for my wallet as long as i do not care for the country or my son life here.
Governments are in a spending frenzy now, more and more public servants, migrants, projects to keep kicking the can with less and less wealth creation.
Knobby22
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When you emigrated, were you wealthy or did you make it here? Wayne was wealthy before he came to Australia, I am thinking there may be a few others here like that
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I had a backpack and no money but an IT skill.i brought in knowledge and formation not present here, my edge
I made it all here but all money was on export based work.not recycling
IT ATC system later sold to Boeing, 20y optimising coal industry system mostly operational ones , consultancy OS for mining and then China start-up
Tell me if any of these are doable today?
Which new job is bringing in money from overseas ..how many new mines? How many Australian made innovations...
I am not talking about an app to lower DV on transgender native NDIS population
Migration can be good if used properly and selectively chosen, that should be the last step once we have proper economic infrastructure..we do not even have enough power and water for current population
As many millionnaire can come and leave as they want, they are not the problem, not the 4000 a year, the 596,000 remaining others are the issues
Anyway, we are off topic..
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depending on your IT skills , VERY doable , but the clients may differ
Java trapped a lot of developers , and created a lot of jobs debugging Java applications
they may all be in a different language now , but the trend will be the same ( few folks with hardware up skills to find if the hardware/firmware/BIOS is lacking and THEN tracking down any software issues )
the same with cyber-security
Knobby22
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i have mentioned before, I know some Russian immigrants who have set up a great company in LED luminaires that export worldwide into the mining market.
It is getting harder to be entrepreneurial, but it is worldwide. Imo its more caused by multinationals and political interference i.e. governments deliberately affecting markets such as the Chinese with lithium and the USA in other markets.
I am personally involved in a start- up at present as a minor investor run by a cousin and two others. Will mention one day when we float hopefully.
Still plenty of people succeeding. Guzmen vs Gomez comes to mind. AfterPay.
Aconex and Dial before you Dig are two others that are now world wide success stories in the software vein.
Someone posted on this site a graph showing that it is much easier to go from the bottom to the top in Australia than in most other countries including the USA. Destroying the middle class and reducing wages does not help start ups.
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But i believe this is looking in the mirror, i can tell you my stories of potential enterprises destroyed by
Big corporate power..stolen basically
Regulatory framework..medical
And the last one got its chance then travel was banned with covid :so relocate to China wo family or wait for the Australian gov to become reasonable lol
I know that my successes here would be very difficult to reproduce now as:
Destruction of industrial and r&d framework, agriculture and mining are now a target, what other sectors are left?
Yes you can get rich,many become millionaires in the french suburbs too but i am talking meaningful businesses, adding value to this country like your led business mentioned..
I frequent startup hubs so am well aware of the ecosystems but most are turning into welfare economics:
Helping to deal with red green tape specific to Australia,
Fishing for gov money via ndis, DV, aboriginal open wallets
And i understand it: where is the accessible money in 2024?
Good luck for your startup
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Ok i definitely stop there, off topicBut i believe this is looking in the mirror, i can tell you my stories of potential enterprises destroyed by
Big corporate power..stolen basically
Regulatory framework..medical
And the last one got its chance then travel was banned with covid :so relocate to China wo family or wait for the Australian gov to become reasonable lol
I know that my successes here would be very difficult to reproduce now as:
Destruction of industrial and r&d framework, agriculture and mining are now a target, what other sectors are left?
Yes you can get rich,many become millionaires in the french suburbs too but i am talking meaningful businesses, adding value to this country like your led business mentioned..
I frequent startup hubs so am well aware of the ecosystems but most are turning into welfare economics:
Helping to deal with red green tape specific to Australia,
Fishing for gov money via ndis, DV, aboriginal open wallets
And i understand it: where is the accessible money in 2024?
Good luck for your startup
Would be happy to have a chat one day @Knobby22 we often differ but could be interesting . let's pm if we want to carry on
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Sadly, i can not access the content.. Monday..https://www.afr.com/wealth/investing/the-blueprint-for-aussie-wealth-creation-may-no-longer-apply-20240903-p5k7ma
The blueprint for Aussie wealth creation may no longer apply
For the past 30 years, the formula for wealth creation and preservation in Australia has followed a predictable pattern. But things have shifted, perhaps irrevocably.Shaun CartoonTax lawyer
Sep 11, 2024 – 5.00am
Private wealth is restless. When Australia’s Rich Listers get together to shoot the breeze these days, it’s not the footy finals or the US presidential election that dominate the conversation. The hottest topic is how people are prepping the family wealth for the next global disaster.
Geopolitical uncertainty in the Asia-Pacific region, wars in Europe and the Middle East, and rising community disharmony, here and abroad, are fuelling a sense of personal anxiety and financial foreboding.
And while, for the past 30 years, the formula for wealth creation and preservation in Australia has followed a predictable pattern – build a business, sell it, pay your tax, spread your wealth across a mix of discretionary trusts and a self-managed superannuation fund, and buy as much property as you can get your hands on – a steady stream of new tax nasties is raising questions around whether this previously reliable blueprint continues to be fit for purpose.
Australian property is increasingly viewed as a sitting duck by ravenous state governments devising ever more ghoulish ways to tax it. From windfall gains tax on unrealised gains, re-zoning events and increases in land tax (from both higher rates and markedly higher valuations), to an array of surcharges and additional taxes for trusts, vacant property and commercial land, the reliable wealth creation formula of the past is being challenged like never before.
The Greens’ vision of imposing Robin Hood taxes on the very wealthy would line bank vaults from Singapore to Switzerland.
The federal government’s proposal to tax unrealised capital gains in SMSFs worth $3 million-plus has also triggered a quiet panic. Irrespective of whether these reforms are ultimately enacted, the government’s intent has been made clear and many large SMSFs have already taken the hint and begun to proactively withdraw assets.
Footloose in Asia
These revenue grabs have dramatically raised the cost of land banking, especially by foreign residents, and in the absence of any meaningful tax reform, these random acts of gratuitous tax brutality seem likely to continue over time.While not daring to openly identify any of them as a “wealth tax”, their cumulative effect over time will amount to just that – a wealth tax by 1000 amendments.
Against this backdrop, many wealthy families whose balance sheets are now viewed as massively overweight in Australian property, are looking to diversify, not only their asset classes but also the location of the family wealth to ensure access from multiple vantage points.
This emerging trend is providing offshore wealth advisers and private bankers with a once-in-a-generation opportunity to make a comeback. Elite offshore wealth advisers, who for many years have been frustrated by their Australian clients’ penchant for local property, tell me that business is picking up.
Alternative asset classes and commodities are booming, including gold.
In the Asia-Pacific region, Singapore – with its stable government, strong financial sector and very favourable tax settings for Singapore family office funds – has been a significant beneficiary of Asian wealth migration over the past five years and the future looks even brighter.
Foreign temptations
In terms of structuring, one prominent offshore wealth adviser tells me that most of their Australian resident clients do not have offshore structures like companies or trusts. Instead, they set up offshore accounts held by Australian resident discretionary trusts.This is unsurprising. Garden-variety discretionary trusts have overwhelmingly become the investment entity of choice for Australian family groups.
Once considered a tool for tax evasion, the ATO spent much of the last 15 years cleaning up offshore trusts and companies through various programs like Project Do It, which encouraged eligible taxpayers to voluntarily disclose unreported foreign income, capital gains or incorrectly claimed deductions.
But as offshore assets become more popular again, so too will the temptation to establish offshore entities to hold them. This time around, the attraction of holding family capital in a mix of offshore entities will have less to do with tax, and everything to do with providing another layer of asset protection, and ensuring greater flexibility and access to funds in future disaster scenarios.
That said, the establishment of offshore structures is not for the faint-hearted, because it still raises several Australian income tax and integrity provisions that need to be carefully considered, not the least of which are the foreign trust and company income attribution rules.
These rules can operate to tax an Australian resident on income of foreign structures, whether or not the taxpayer actually receives a penny of it. Add to that the rules that tax money on its repatriation to Australia and the unwary investor can have their returns consumed by Australian and foreign tax (for which there is no guarantee of a credit in Australia).
So, as the arc of tax structuring once again bends offshore, families and their advisers will need to ensure their new structures are fully compliant with Australia’s tax laws to avoid costly mistakes of the past.
wayneL
'Abba Shboq Lhon'
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My name was mentioned above as having come to Australia as already wealthy, but as the poster concerned had me on ignore, therefore removing my right of reply, I only found out about this from a third party.
It is not true. although my my family had a successful business in SoCal, we left there with only $6,500 and SFA else. That is a long and sad story for another time.
By the time we arrived in Oz four months later, Dad had burnt through most of that in travel expenses, and setting up here. They worked their nuts off in employment and hocked themselves up the fecking eyeballs to buy a humble pile of bricks in Morley.
From there, Dad started a *very small upholstery manufacturing business on the back veranda after work, eventually taking the risk to go full time. And forever sinking whatever the business made back into the business to grow it, held down a job to pay for groceries and the mortgage
It did become a success and eventually did furnish a very comfortable lifestyle for us.
While it is still possible to start a successful small business in Australia it would be impossible to start that particular business, thank you Paul Keating and economic rationalism. It is definitely becoming much harder or impossible outside of certain service sectors.
Perhaps my family may have been able to start some other business had they arrived in today's economic climate and been successful. However furniture manufacturer was all my old man knew how to do and in fact, apart from playing with horses, it was all I knew how to do as well.
Right now, given some very basic machinery, I could make you a Chesterfield sofa from scratch, from the frame, old fashioned hand tied coil springing, cutting and sewing the leather without wasting shitloads of it, to the upholstery and even hand rubbing the leather to give it an antique look finish.
In Australia that is not a successful business model, one must simply become an importer from southeast and east Asia at vastly inferior quality.
As evidence of the current malaise, I offer up the recent articles regarding the "Jim's" franchises great business costs far outweigh the achievable income... The latest in a litany of franchisee tales of woe.
Will I make good money from my current profession, almost all of my wealth has been made through shuffling paper and doing nothing actually productive apart from adding liquidity to markets.
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