Imposing fees on foreign property purchases, which will be used to fund more strict monitoring of said purchases, and civil penalties for breaking the now completely unenforced and massively abused laws.
The Property Country of Australia hates the new laws, which is a big stamp of approval. Cautiously optimistic, let’s see where this takes us in 2015 and whether this halts the Sydney bubble.
Most businesses in Australia would greatly benefit from a tax shift to economic rents with a commensurate reduction in company tax and the abolition of inefficient taxes such as stamp duties and insurance taxes.
Vast sums of money that are currently directed towards rent seeking would be redirected into productive activity, generating employment and diversifying the economy. Boom and bust property cycles would be flattened due to reduced speculation and, as a result, the broader scale ups and downs of the business cycle would be somewhat moderated.
They’ve already ensured Australia is the most unaffordably expensive country to live in, with the world’s biggest housing bubble – despite having the lowest population density of any country on Earth, and now this? What a bunch of corrupt scumbags! They will not stop until they bleed us all dry..
They emerged as a budget measure, but they won’t save the tax-payer money in any real sense.
A fundamental feature of HECS is that the Government forwards all the money upfront to the University. So if fees go up by more than the cuts, the Commonwealth shells out more from day one. Default will rise. More students will work overseas – legitimately, this is not evasion – and so only through some arcane aspect of accounting standards can this even look as if it is a savings measure.
This isn’t a savings measure: it is ideology in search of a problem.
But it gets worse. Bizarrely there is no guarantee that a single cent of the extra money will go into the student’s course: it could go into research, infrastructure, paying for past follies or current cock-ups. It’s tempting, believe me, I make them too, but it’s wrong.
The internal equity aspect of the policy design is laughable: why should the second poorest quartile of students subsidise the lowest quartile?
For the first time, Australia is not in the top 10 cleanest countries in Transparency International’s corruption perception index. It’s not surprising that Australia has slipped. Barely a day goes by without newspaper reports of corruption – in political parties, trade unions, sports bodies, companies.
With nearly all member of parliament rorting the property market with negative gearing and capital gains exemptions, while keeping the rorts in place and destroying our economy in the process – is it any wonder? Not to mention all the public pork money for infrastructure projects, healthcare and education which is funnelled into private hands – like Tony Abbott’s medical research fund, designed solely to sift taxpayer money to big pharma in the US.