News & Publications
News and publication relating to mortgage, finance and property market
Burdensome stamp duty must be scrapped
by Julia Corderoy, 31.03.2015
The industry is calling for urgent action on stamp duty tax after the release of the federal government’s tax discussion paper, which admits it can be a “tax burden” on consumers. Despite stamp duties on the transfer of residential and commercial property being the second-largest source of state tax revenue – generating 24% of state tax revenue – the federal government’s tax discussion paper, released yesterday, concedes that the “highly volatile” tax can be a burden on many consumers.
The Housing Industry Association also welcomed a discussion on “Australia’s most inefficient tax”. “Stamp duty on property conveyances is Australia’s most inefficient tax, and housing taxation reform can unlock substantial productivity gains and boost economic growth in the Australian economy.”
Negative gearing does not create speculative investment: Hockey
by Julia Corderoy, 31.03.2015
Negative gearing does not drive investment in rental properties, according to Treasurer Joe Hockey. The federal government’s tax discussion paper, released yesterday by the Treasurer, argues that the decision to invest in housing is more about Australia’s capital gains tax arrangement rather than the tax treatment of negative gearing. “The potential tax advantage comes on the income side from the taxation of the capital gain earned from the asset,” the paper states.
“If the individual realises a capital gain when selling the property, only 50% of this income is included in their taxable return.” The paper also highlights that negative gearing does not just apply to property investors, so any discussion on negative gearing reform must be careful not to single out property investment.
Stop cutting rates: ANZ chairman
by Maya Breen, 26.03.2015
ANZ Bank chairman David Gonski has said interest rates are only one factor in the economy's performance as he urges the Reserve Bank not to cut rates next month. Speaking at a business lunch in Sydney yesterday, Gonski said that lower oil prices and the falling dollar were already adding stimulus to the economy.
Rates are at a current record low of 2.25% and Gonski hopes the RBAwill "think twice" before cutting rates again, The Australian reports. “Oil prices are low, interest rates are historically low and the dollar seems to be moving lower anyway,” he said. “Those are quite conducive to business activity so … I’m not convinced that one should drop interest rates.”
Former Howard government minister and assistant treasurer, Helen Coonan also urged caution, The Australian reported, saying the last RBA rate cut in February to 2.25% “hasn’t really done very much” to restore confidence.
FHBs back 'super' idea
by Julia Corderoy, 23.03.2015
South Australian first homebuyers are rallying behind Treasurer Joe Hockey’s comments on considering proposals that would enable young Australians to use superannuation to buy their first home. More than 65% of South Australian first homebuyers would be willing to dip into their superannuation savings to help fund a home deposit, according to new research from HomeStart Finance. Of these, a total of 63% already had superannuation balances greater than $20,000 and 47% earned more than $50,000 per year.
HomeStart chief executive John Oliver said the results highlighted that a proposal to enable first home buyers to access superannuation to fund a home deposit would be likely to receive strong support among its target demographic. “It is disappointing that potential homebuyers with secure employment, a reasonable level of income and are in a good position to service a home loan can’t actually buy a home because they don’t have enough money saved to get started,” he said. “HomeStart takes the view that there are two long-term assets that most people aspire to by the end of their working life – owning a home and having a superannuation balance that provides for a comfortable retirement.”
Whilst those against the idea argue that it could impact a person’s financial security come retirement, Oliver says with mandatory replenishment and the ownership of an asset, Australians will be better off.