It’s time for the prime minister to step up and rule out tinkering with the housing market and get on with the job of creating more supply. In particular he must rule out any changes to negative gearing.
Housing repayments were more affordable in the first quarter this year than the last quarter in 2021, but interest rate hikes since then will reverse this.
The latest Australian Institute for Progress Housing Affordability Index shows housing affordability improved slightly in the September Quarter, 2021. This was as a result of price falls in Melbourne, while they stayed almost stationary in Sydney.
If the measures we take to combat a pandemic reduce economic well-being too much in an effort to protect some citizens from the disease, it will damage the health of other citizens by destroying their livelihoods or prospects.
Most significantly 56% said they were prepared to pay higher tax. While Greens (75%) were the most generous, even 46% of Liberal voters said they were prepared to pay more.
To my dear conservative friends inside and outside parliament, I know you are upset at the demise of your putative leader, Tony Abbott, whom I hold in high regard. May I kindly implore you, however, to pull your heads in?
Senator James McGrath has launched a campaign for Australia to have an online transparency portal, similar to those in the United States and the United Kingdom, to highlight the ‘who’, ‘what’, ‘why’, ‘where’ and ‘how’ of government spending.
The 2015 Federal Budget represents a capitulation by the government to the ALP and the Senate and builds a populist base for the next election.
As I mentioned to Pat Hession on Townsville ABC radio yesterday afternoon, the 2015-16 Federal Budget simply kicks the can down the road, as they say, leaving it for a future Government (or this one if it stays in power) to make the hard decisions necessary to truly repair the budget (see my post on Queensland Economy Watch from May 12). A trajectory back to surplus is not the same thing as budgeting for a surplus, and there is no surplus over the forward estimates, just a steady fall in the deficit – a fall which may not occur as projected, as new budget pressures emerge in coming years and the Government commits to new expenditures or renews old programs.
This time last year, we noted that the budget was one of pretend austerity. Much of the debate following the budget then pretended that the austerity was real. It was not real austerity then and it is not real austerity now. In Chart 1 below, drawn from Statement No.10 page 6, we see the payments of the budget as a percent of GDP. Last year the budget was for year 2014/15.