The Albanese government

[wayneL]

Wow this will be interesting if adopted, home owners taxed on the rent they are saving, now that would catch all but the poorest and those who have the house in family trusts etc.
Sounds like a plan, if anyone can get it through Labor can, but will politicians be exempt, as usual? Lol

'Imputed rent' and what it could mean for a fairer Australia

As industry leaders and the federal government prepare for next week's economic summit, two economists have started a national conversation by arguing that, to make Australia's tax system fairer, we should consider taxing home owner-occupancy. Here's what that means.

www.abc.net.au

Apart from thinking this is insane, I have questions:

Is this only for fully owned ppor?
Will equity on mortgaged ppors be taxed (including inherent complexities)?
Will we be able to claim deductions such at mortgage interest, rates, repairs/maintenance, depreciation etc like investors can?
How will this imputed rent be calculated?
Will it be means tested according to ability to pay?

Considering the above, a 90yo widow(er) with declining mental competency (such as one of my neighbours) will effectively be forced into running business accounts on their own damned house.

This is idiocy of the highest order IMNTBCHO.

 

[SirRumpole]

Apart from thinking this is insane, I have questions:

Is this only for fully owned ppor?
Will equity on mortgaged ppors be taxed (including inherent complexities)?
Will we be able to claim deductions such at mortgage interest, rates, repairs/maintenance, depreciation etc like investors can?
How will this imputed rent be calculated?
Will it be means tested according to ability to pay?

Considering the above, a 90yo widow(er) with declining mental competency (such as one of my neighbours) will effectively be forced into running business accounts on their own damned house.

This is idiocy of the highest order IMNTBCHO.

Its just a brain fart from an academic, no chance whatever that it will be implemented.

 

[Bellcose]

Its just a brain fart from an academic, no chance whatever that it will be implemented.

As I posted a while ago.

It's just an academic thought bubble FFS. They publish these things all the time. They rarely get beyond that stage. It's more than likely the economic nerds at Treasury have already run the numbers many moons ago. The ABS had a paper on the methodology of net imputed rent nearly a decade ago.

Worry about it if it ever reaches draft legislation stage.

I hunted down the ABS paper and it was a net concept i.e. rent less holding costs (rates, interest, etc, etc.) To apply it I think you would need to adjust for the price of houses/apartments in various areas at average price levels which would need to be continually adjusted. A three bedroom shack at Kalgoorlie would have a different value to an old renovated three beddie in Arncliffe.

 

[StockyGuy]

Regarding the idea of removing the CGT exemption from ya home; I trust if such insanity ever passed it would only take effect from a certain date and not be retrospective. Some of us have made a specific decision to never take in a paying lodger because of how that would negatively impact the CGT exemption.

 

[Bellcose]

I'm wondering how tiring it must be to have a mini meltdown each time an article appears in the media or some comment is made by a talking head about possible changes to tax or social issues.

Rather than worrying about what hasn't happened yet which may never happen, I'm looking forward to much money coming into my account on the 19th when MIR pays and then on the 12th of next month when ARG does the same, shortly followed ETFs advising of distributions and giving me the dosh in mid-October.

Money and I'm not afraid to use it.

 

[PZ.]

Regarding the idea of removing the CGT exemption from ya home; I trust if such insanity ever passed it would only take effect from a certain date and not be retrospective. Some of us have made a specific decision to never take in a paying lodger because of how that would negatively impact the CGT exemption.

You can imagine what it would do to the budget if an owner in a strata block could claim their levies, water, rates, depreciation etc because the family home is taxable

 

[farmerge]

Its just a brain fart from an academic, no chance whatever that it will be implemented.

@SirRumpole As I have found over the years, academics generally do little except dream up ideas that are then discarded as being generally useless, such as they are.

 

[wayneL]

Brain farts sometimes develop into great steaming piles of turd.

We already have unrealised CGT in case anyone has forgotten.

 

[wayneL]

Brain farts sometimes develop into great steaming piles of turd.

We already have unrealised CGT in case anyone has forgotten.

Another brain wet fart from Blighty. Stand by for talk of an inheritance tax here in 'Straya (of which has already been mooted).

 

[farmerge]

Another brain wet fart from Blighty. Stand by for talk of an inheritance tax here in 'Straya (of which has already been mooted).

View attachment 206274

Ahhhh we are robbed enough now by various governments. Not happy with this load of crap.

 

[wayneL]

More detail from the propeller heads </sarc>:

Loading...

www.news.com.au

 

[Smurf1976]

View attachment 206274

I've a very simple answer to that.

What she's referring to is not a greater good but rather is simply a scheme to enable the privileged to gain at the expense of the rest.

Welfare for those in genuine need I'm firmly in favour of, heck I'd actually march through the streets in support of that. If someone's fallen into trouble then as a society we ought help them back up yes. Likewise if the parents are crap, then we need to do what we can to give the kids an education and so on and break the cycle.

Welfare for those who simply can't be bothered doing any sort of legitimate work, or who only want to do work of a type society has little need for, is something very different however and that's what I'm referring to. No, we shouldn't fund people to live a life of luxury or pursue some impossible fantasy.

 

[Smurf1976]

More detail from the propeller heads </sarc>:

Loading...

www.news.com.au

So let me get this right.

Government intentionally creates inflation and drives up house prices and these people think we ought then pay a tax on something that is already a tax, that's what inflation effectively is in practice, and that government has already profited from.

I have an alternative thought that involves a shakeup of how we run society.

I'll be polite, but suffice to say I'd like to see a lot more influence in the running of society from those with a background in any career where getting it wrong results in real consequences. Bearing in mind this is most of the workforce outside academic and social science fields.

 

[sptrawler]

If people are concerned about a widening gap between renters and home owners then all they need to do is make it easier for people to own their own homes, ie get investors out of the market . We all know what that means of course, removing negative gearing and CGT deductions on investors. If the government is too gutless to do that, they are not going to tax home owners on rent they never receive.

If the Government get investors out of the housing market, it would mean the Governments have to get back into supplying social housing and they don't want that, it took them years to get out of it.

 

[farmerge]

More detail from the propeller heads </sarc>:

Loading...

www.news.com.au

@wayneL Unfortunately I must leave my comments on this pile of crap to myself, as I feel that the Moderators would more than likely ask me to remove myself from the Forum or they would do it for me.
Suffice to say, "Not Happy, Jan".

 

[SirRumpole]

If the Government get investors out of the housing market, it would mean the Governments have to get back into supplying social housing and they don't want that, it took them years to get out of it.

Do we really think that investors supply "social" housing? Social housing is for people who can't afford market rents.

It has to be a government operation and NG and CGT allowances cost around $20 billion a year.

A lot of social housing could be built for that sort of money.

 

[Bellcose]

Do we really think that investors supply "social" housing? Social housing is for people who can't afford market rents.

It has to be a government operation and NG and CGT allowances cost around $20 billion a year.

A lot of social housing could be built for that sort of money.

Each year, I think, Treasury publishes a paper "Tax Expenditure and Insights Statement.: While it may seem odd it terms some tax expenditure as "Revenue Forgone."

Here is a link to the latest report in case anyone is interested.

2024-25 Tax Expenditures and Insights Statement | Treasury.gov.au

What is the Tax Expenditures and Insights Statement? The 2024–25 Tax Expenditures and Insights Statement (TEIS) estimates the revenue forgone through tax expenditures. It also provides data on how large tax expenditures and common tax system features are distributed across individuals and...

treasury.gov.au

 

[wayneL]

Each year, I think, Treasury publishes a paper "Tax Expenditure and Insights Statement.: While it may seem odd it terms some tax expenditure as "Revenue Forgone."

Here is a link to the latest report in case anyone is interested.

2024-25 Tax Expenditures and Insights Statement | Treasury.gov.au

What is the Tax Expenditures and Insights Statement? The 2024–25 Tax Expenditures and Insights Statement (TEIS) estimates the revenue forgone through tax expenditures. It also provides data on how large tax expenditures and common tax system features are distributed across individuals and...

treasury.gov.au

The reductio ad absurdum argument would then say that any taxation less than 100% is revenue forgone I guess.

 

[IFocus]

Australia is the 8th lowest taxed country in the OECD if we were average there would be another $100bil taken in each year.
One major problem with Australia’s tax system is the wealthy don’t pay their share.
One way to solve this is an inheritance tax
On asset’s worth more than $5 to $10 million.

 

[SirRumpole]

Australia is the 8th lowest taxed country in the OECD if we were average there would be another $100bil taken in each year.
One major problem with Australia’s tax system is the wealthy don’t pay their share.
One way to solve this is an inheritance tax
On asset’s worth more than $5 to $10 million.

Chicken feed really.

We should be putting an export tax (say 10-20% of the current market price) on all our natural resources.

Major Export Commodities – Value Estimates for 2024​

• Total goods & services exports: AUD 644.4 billion Australian Bureau of Statistics+1

Top commodities by value:

Commodity	Value (Approx.)	Notes
Iron ore & concentrates	(Largest share)	~60% of exports to China (≈ US$100 b among ~US$340 b total goods) The AustralianTrading Economics+1
Coal (thermal & metallurgical)	multi-billion AUD	Forecast ~A$36 b (thermal) & A$47 b (metallurgical) in 2023-24 minister.industry.gov.au
LNG (petroleum gases)	A$63 b–A$71 b forecast	Down from A$93 b in 2022-23 minister.industry.gov.au
Unwrought gold & precious metals	~A$22 b forecast	Down from A$24 b in 2022-23 Industry.gov.au

So at 10% export tax that's

Iron ore $34b pa
Coal $ 8.3b pa
LNG $6b pa (say)
Gold $2b pa

Not to be sneezed at.