An entity directed by HSN's Rafi Assouline and Rebel Property's Allen Linz has filed plans for an impressive new precinct in Woolloomooloo.

The major mixed-use development would transform a prominent William Street site into a new residential village anchored by affordable housing and a large public park.

The proposal, submitted as a State Significant Development Application, covers 164-172 and 174-194 William Street, a 6,398 sqm site between Forbes Street and Dowling Street on the southern edge of Woolloomooloo.

Designed by fjcstudio in collaboration with Bangawarra, Studio Bright and Tribe Studio Architects, the scheme would deliver 227 apartments across four residential buildings ranging in height up to 18 storeys, alongside retail space, public domain improvements and a new publicly accessible park.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="0eb59b7c-914a-4a5c-b849-3a56749f5e93" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.18.51%E2%80%AFAM.png?VersionId=mxM6EEqeoLjrCiTlCzTKTvzpKuh6kSkH" />

It's another design scheme for Rebel, who took <a href="https://www.apartments.com.au/news/nsw/first-look-rebel-property-group-takes-woolloomooloo-precinct-to-nsw-government">concept plans to the NSW Gov late last year</a>.

The latest plans will be a mix of 167 build-to-sell apartments and 60 affordable apartments, with the affordable housing component representing 15 per cent of the project's gross floor area. The apartment mix includes 12 one-bedroom, 53 two-bedroom, 89 three-bedroom apartments and 13 penthouses, while the affordable housing component would comprise 42 one-bedroom and 18 two-bedroom apartments.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="3b3d4553-8a8c-4af5-aa8c-519ffb1e28c6" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.12%E2%80%AFAM.png?VersionId=_Yb6ibN7eDnOtQjCNDK2eviORa4qzgv." />

Rebel Property is seeking to take advantage of the NSW Government's infill affordable housing bonus provisions under the Housing SEPP, which provide additional floor space and height in exchange for the delivery of affordable housing for a minimum of 15 years. The planning pathway allows a 30 per cent increase in floor space ratio and building height where 15 per cent of the development is dedicated to affordable housing.

&nbsp;

At the centre of the development is a 1,356 sqm sunlit public park designed to become a new community gathering space at the gateway to Woolloomooloo. The park would be complemented by a network of pedestrian laneways connecting William Street with the surrounding streets, improving permeability through what is currently a largely impermeable block.

<img alt="Rebel" data-entity-type="file" data-entity-uuid="257af931-a393-4007-8c6d-7219796df58d" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-06-12%20at%2011.20.51%E2%80%AFAM.png?VersionId=KAHy94GrhaReFsWTGDKfy39EDJ8gEEv4" />

The design team says the public domain has been heavily influenced by the site's topography and Aboriginal cultural heritage, drawing on the escarpments, gullies and landscape characteristics that historically defined the area before urbanisation. The landscape design has been developed in partnership with First Nations consultancy Bangawarra.

The project would be delivered across four separate buildings. The William Street East and William Street West buildings, designed by fjcstudio, would contain the majority of the apartments. Melbourne-based Studio Bright has designed the Forbes Street building, while Tribe Studio Architects is responsible for the Dowling Street building.

Rebel had secured approval for the concept plans late last year.

Joel Robinson

First look: HSN, Rebel, advances Woolloomooloo precinct plans

A locally heritage-listed furniture showroom on Water Street is set to become the centrepiece of a new mixed-use residential development as local developer&nbsp;<a href="https://www.apartments.com.au/developers/keylin-group">Keylin</a> seeks approval for <a href="https://www.apartments.com.au/new-apartments/lotus-on-water-street-290-water-street-fortitude-valley-qld-4006">Lotus on Water Street</a>, a 15-storey project on the Fortitude Valley side of Spring Hill.

The proposal spans 290 Water Street and 137-141 Warry Street, combining several properties into a 2,869 sqm site that sits between Fortitude Valley, Spring Hill and the rapidly evolving Victoria Park precinct. Keylin's plans would deliver 132 apartments alongside new retail, hospitality and commercial space, while retaining and repurposing the historic Brunswick Home Furnishers Showroom that fronts Water Street.

Designed by <a href="https://www.apartments.com.au/architects/jackson-teece">Jackson Teece</a>, Lotus on Water Street comprises a 12-storey residential tower rising above a three-storey podium and communal rooftop terrace. The development includes 76 apartments classified as multiple dwellings and a further 56 units proposed as short-term accommodation, designed to be flexibly used as either accommodation or permanent residences. The apartment mix comprises six one-bedroom, 54 two-bedroom and 16 three-bedroom homes.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="9822bb79-6c49-49c9-95ba-319e8c8d81c3" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20front.png?VersionId=ioW8zbN4UVebbLetTFuv92t.HkdgfR5e" />

Residents would have access to an extensive rooftop recreation level spanning more than 1,200 sqm of communal open space. Plans include a pool, gym, sauna, infrared sauna, yoga area, library, private dining room, barbecue facilities and landscaped entertainment spaces, making the rooftop the project's largest shared amenity offering.

At street level, the proposal focuses on the adaptive reuse of the heritage buildings along Water Street, where 518 sqm of retail and commercial space is planned across shop, office and food and drink outlet uses. A permeable residential lobby would be positioned between the retained heritage buildings, creating a pedestrian connection between the historic streetscape and the new tower behind.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="269cf3e0-7d13-48bf-a318-05a00deb5c10" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20podium.png?VersionId=DLXmTCLsp6GOcLpQ0h.0z7wKCw59EhN_" />

The heritage retention strategy is central to the scheme. The development application notes that the Brunswick Home Furnishers Showroom and adjoining heritage buildings will remain, with only non-significant structures on the site earmarked for removal under a previously issued Heritage Exemption Certificate. Levels one and two of the new podium are recessed behind the heritage façades to maintain their prominence within the streetscape.

Jackson Teece has drawn inspiration from the site's manufacturing history when designing the podium. The planning documents state that the façade incorporates perforated metal screening that references the woven and rattan furniture historically produced on the site. Cascading and climbing plants are integrated throughout the podium to soften the building's presentation and screen parking levels behind. The landscape strategy also informs the project's name, Lotus on Water Street, drawing on the historic Spring Hollow waterholes that once ran through Spring Hill and the blue water lilies associated with Meeanjin, Brisbane's traditional name.

The proposal also incorporates the neighbouring property at 141 Warry Street, currently occupied by a healthcare service. The existing building would remain, with nine dedicated parking spaces allocated within the new development to support its ongoing operation. In total, Lotus on Water Street proposes 117 car spaces, including 110 resident spaces and seven visitor bays, alongside 100 bicycle spaces.

<img alt="First look: Keylin unveils heritage-led Lotus on Water Street tower in Fortitude Valley" data-entity-type="file" data-entity-uuid="70cf07bc-4fd8-4e70-92dd-be8b21c4e4f0" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/fortitude%20valley%20site.png?VersionId=txlxrJImM0Sm_vTzHVKh5DDUkyL_CiiA" />

The site sits within the Spring Hill East Precinct of the Spring Hill Neighbourhood Plan and is positioned around 650 metres from both Fortitude Valley Station and Exhibition Station. It is also within walking distance of the King Street precinct, Royal Brisbane and Women's Hospital, Herston Quarter and Victoria Park, which is earmarked to become a major venue precinct ahead of the Brisbane 2032 Olympic and Paralympic Games.

Planning documents describe the location as a key gateway between Spring Hill and Fortitude Valley and highlight the area's increasing importance as new transport infrastructure and Olympic-related investment reshape Brisbane's inner north. The development team argues the project will contribute additional housing supply while activating a section of Water Street that has historically received less investment than other parts of the Valley.

Keylin has become increasingly active across Brisbane and southeast Queensland, assembling sites in strategic inner-city locations. They are currently selling and delivering <a href="https://www.apartments.com.au/new-apartments/oria-spring-hill-447-gregory-terrace-spring-hill-qld-4000">Oria Spring Hill</a>, just over 140 apartments due for completion in 2027.

Keylin plans heritage-led Lotus on Water Street apartment development in Fortitude Valley

Roseville is poised for a wave of new apartment development following the NSW Government's rezoning of land around Roseville Station under its Transport Oriented Development program.

The new planning controls have unlocked significant development potential within walking distance of the station, with a number of sites expected to be amalgamated and redeveloped in the coming years as developers seek to take advantage of the increased density allowances.

One of the more restrained developments in the precinct, and set among the first to be delivered having commenced well before the recent changes, is Hyecorp's Juliet. The boutique apartment project is already well under construction and remains on track to welcome residents by the end of the year, offering a markedly different proposition to many of the larger-scale developments now likely to emerge across the suburb.

[smartcode_project:default project_id=7395 project_image_fid=278194]

<a href="https://www.apartments.com.au/new-apartments/juliet-roseville-64-pacific-highway-roseville-nsw-2069">Juliet</a> will comprise just&nbsp;34 one-, two-, and three-bedroom apartments opposite Roseville Station. For Hyecorp, which has delivered projects across Sydney's Lower North Shore for more than three decades, Roseville presented a rare opportunity to address a growing gap in the market.

"<a href="https://www.apartments.com.au/developments/roseville-nsw-2069">Roseville</a> has long been one of the North Shore's most tightly held and desirable suburbs, offering a unique combination of village charm, established greenery, excellent transport connections, and proximity to some of Sydney's best schools and lifestyle amenities," Hyecorp said.

"We recognised a growing demand from local homeowners seeking to downsize without leaving the community they have built their lives around. The location presented a rare opportunity to create homes that cater specifically to that buyer profile."

[smartcode_project:default project_id=7395 project_image_fid=278196]

The six-level development has been designed by <a href="https://www.apartments.com.au/architects/pbd-architects">PBD Architects</a> as a collection of residences that feel more like homes than apartments. The brief centred generous floorplans, abundant natural light, quality finishes, and strong connections to outdoor space.

PBD Architects drew inspiration from Roseville's established garden suburb character, creating a building that sits comfortably within its surroundings rather than dominating them. The architecture incorporates natural materials, soft forms, layered landscaping, expansive balconies, and generous setbacks to strengthen the connection between residents and the suburb's leafy environment.

"The focus was on designing spacious, house-like residences for discerning owner-occupiers and downsizers who wanted to remain on the North Shore without compromising on comfort, privacy, or design," PBD said.&nbsp;

"Every apartment was to feel considered, timeless, and highly functional."

[smartcode_project:default project_id=7395 project_image_fid=278195]

Inside, residences feature engineered timber flooring, stone kitchen benchtops and splashbacks, integrated Fisher &amp; Paykel appliances, ducted air conditioning, and large outdoor entertaining areas designed to take advantage of district and treetop views.

Residents will also have access to a rooftop barbecue and lounge area, alongside practical amenities including parcel lockers, EV charging capability, bicycle storage, a dog wash bay, and a basement car wash facility.

The majority of purchasers so far have been local owner-occupiers from Roseville, Lindfield, Chatswood, Killara, and the broader Upper North Shore, many of whom are transitioning from larger family homes.

"Buyers are looking for spacious, house-like apartments that allow them to downsize without feeling like they are sacrificing comfort or functionality," Hyecorp noted.

"They value large kitchens, generous living areas, ample storage, quality finishes, secure parking, lift access, and low-maintenance living."

[smartcode_project:default project_id=7395 project_image_fid=278204]

Juliet sits directly opposite Roseville Train Station and within walking distance of Roseville Village, while Chatswood's retail and dining precinct is only minutes away. The development is also surrounded by some of Sydney's most established schools, including Roseville College, Ravenswood, Pymble Ladies' College, and Knox Grammar, as well as nearby parklands and golf courses.

Juliet is currently more than 75 per cent sold ahead of its anticipated completion in late 2026.

[smartcode_project_cta:default project_id=7395]

Juliet to sit quietly amid Roseville apartment boom

Sherpa Property Group has unveiled the third instalment of its Flourish series, securing full approval for the two-tower, $500 million Flourish Soleira development in Palm Beach.

<a href="https://www.apartments.com.au/new-apartments/flourish-soleira-1150-1154-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a> will rise from a prominent site in the commercial heart of Palm Beach, the long-time home of Cash Converters and a range of local retailers.

The project will introduce a new retail and dining precinct at ground level, beneath 286 apartments.

[smartcode_project:default project_id=150017 project_image_fid=370959]

“We’re very committed to not only providing affordable residential offerings that are much needed in Palm Beach, but also delivering a vibrant new commercial heart that complements the extraordinary growth of the southern Gold Coast,” Sherpa Property Group founder Christie Leet said.

The development will sit under Sherpa's Flourish brand, which is aimed at providing a pathway into the beachside suburb for locals, first-home buyers and downsizers. In a move designed to assist first-home buyers entering the market, Sherpa has reserved all one and two-bedroom, one-bathroom apartments exclusively for eligible first-home buyers.

[smartcode_project:default project_id=150017 project_image_fid=370964]

“Our vision through Flourish is to create a vibrant retail and lifestyle focal point within the Palm Beach centre zone, delivering thriving communities underpinned by lifestyle-rich locations,” Leet said.

“So far, Flourish has been an incredible success, and we hope to carry this momentum as we progress the next two Flourish projects in Palm Beach.”

[smartcode_project:default project_id=150017 project_image_fid=371430]

Located across 1150-1164 Gold Coast Highway and 3 Sixth Avenue, the development will comprise two towers. The northern tower will deliver 154 apartments, while the southern tower will add a further 132 residences, helping address ongoing demand for new apartments in the tightly held coastal suburb.

Flourish Soleira will also feature the most extensive rooftop amenity offering ever delivered in Palm Beach.

The two towers will be connected by a skybridge, with residents gaining access to a rooftop recreation deck featuring a full-width swimming pool, hot and cold plunge pools, wellness spaces, a gymnasium, private dining facilities, massage treatment rooms, barbecue areas, a basketball court, golf simulator, indoor and outdoor dining spaces, sun lounges and extensive landscaping.

LPS Group is expected to start construction later this year.

Sherpa is already well advanced on construction of its debut Flourish project, Flourish Amargo, located just around the corner from Soleira. Meanwhile, Flourish Oasis, positioned opposite Amargo, recently commenced construction and has nearly sold out its collection of 47 apartments.

[smartcode_project_cta:default project_id=150017]

Sherpa unveils $500m mixed-use Palm Beach precinct, Flourish Soleira

Are mortgage holders set to get a reprieve from the RBA in 2026?

Big Four bank NAB believes so. They are now expecting the next move from the RBA to be a cut, rather than a hike, which they had pencilled in for August. They are unsure of the timing of the cut however, they note in their latest&nbsp;NAB Economics RBA Watch.

NAB Chief Economist, Dr Sally Auld, said recent data suggests the economy has lost momentum and the outlook for rates has shifted, noting that the broader economic backdrop has changed since earlier in the year.

“The next move in the cash rate is likely to be down, but the timing is uncertain," Dr Auld said.

"In February, growth was above trend, the economy was operating above capacity and there was uncertainty over the restrictiveness of rates. None of these conditions exist today,” she outlined.

Dr Auld said recent data pointed to softer momentum across the economy while acknowledging that at the same time, uncertainty remains a key feature of the outlook.

“Both Q1 GDP data and the NAB business survey suggest momentum in the economy has slowed, meaning that growth has likely peaked for the cycle. That said, we are cognisant there is still considerable uncertainty around the outlook, both with respect to activity and inflation.”

Dr Auld said inflation risks and labour market outcomes would be important to watch.

“On the prices side, we are still forecasting above target core inflation through to mid-2027. Margins will compress and weaker labour market outcomes are a risk.”

She said tighter financial conditions are expected to weigh on housing and activity.

“Tighter financial conditions will be reflected in a slowing in house price growth and housing credit growth. In summary, we have greater conviction that the next move in rates is down, but less conviction on the timing.”

Mortgage relief? NAB forecasts RBA rate cut, not hike, after softer economic conditions

Budget

<html><body>
Prime Minister Tony Abbott has ruled out making changes to the eligibility or indexation of the age pension for the next three years.
Responding to <a href="https://www.smartcompany.com.au/legal/politics/41665-hockey-s-budget-roadmap-industry-assistance-age-pension-and-welfare-payments-on-treasurer-s-hit-list" target="_blank">speculation</a> that the government would seek to change pension rules in next month’s budget, Abbott said in a <a href="https://www.pm.gov.au/media/2014-04-29/address-sydney-institute" target="_blank">pre-budget speech at the Sydney Institute</a> yesterday he would keep his 2012 pre-election promise not to change the age pension for now.
“To keep our commitments, there will be no changes to the pension during this term of parliament but there should be changes to indexation arrangements and eligibility thresholds in three years’ time,” said Abbott.
However, the government looks likely to proceed with its <a href="https://www.smartcompany.com.au/legal/politics/41533-are-you-ready-to-work-until-you-re-70-hockey-flags-plans-to-raise-retirement-age" target="_blank">plans to raise the retirement age to 70</a>, as previously flagged by Treasurer Joe Hockey. <a href="https://www.afr.com/p/national/abbott_plan_for_welfare_cuts_to_ZrCS3PW2TTq3asUaOAN1II" target="_blank">Fairfax reports</a> the change will come into effect around 2029.
“I want to assure vulnerable people that the age pension won’t be less tomorrow than it is today and that people turning 65 tomorrow are certainly not going to have to wait five years to retire,” said Abbott.
“Still, with four out of five seniors on the pension, the number of workers per retiree dropping from five to three by 2050, and more than 1,000 people becoming eligible for the age pension every single week, long-term reform is essential and unavoidable,” he said.
Abbott used the occasion to confirm some inclusions in his government’s first budget, including the introduction of co-payments for GP visits and cuts to disability and other welfare payments and family tax benefits.
The Prime Minister did not rule out a temporary increase in personal income tax, the so called ‘debt levy’, which has been <a href="https://www.smartcompany.com.au/legal/politics/41685-debt-levy-on-income-tax-would-hit-small-business-the-hardest" target="_blank">slammed by business groups who have warned that it would hit small businesses the hardest</a>.
However, Abbott said the budget will affect all taxpayers and that if implemented the measures included in the budget will “make personal tax cuts much more likely in four or five years’ time”.
“The budget pain will be temporary but the economic improvement will be permanent,” he said. “I can assure you that everyone will be involved, including high income earners such as members of parliament.”
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
Photo courtesy of Wikipedia/Creative Commons.
</body></html>

jake-cSmGT7VXVf

Abbott: No changes to age pension for three years

<html><body>
GUEST OBSERVATION
Our federal budget is due to be delivered on Tuesday 13 May, 2014 and we are being repeatedly told that there has to be significant cuts to expenditure. Our state budgets will be delivered soon after that date.
In essence it is time for governments to deliver something which is new and helpful to maintain and increase housing stock, but at the same time does not simply drive housing prices higher. This definitely rules out changes to negative gearing as its removal would simply reduce investor activity and available housing stock.
There are two outcomes in our housing markets that are needed:
1. Ensure there is an increase in Australian citizen investment in new housing stock; and
2. Increase the number of first home owners in the market.
The first, in my view, is a state issue
Most of us will have family or friends who have been trying to buy a home and failed because they have been out bid by a cashed-up foreign buyer. One has to ask whether foreign buyers should have equal rights as Australian citizens. I suspect not. That is not to say that foreign buyers are not necessary in our markets, rather they are simply investing in a low risk, very attractive country and for that benefit they should have to pay some type of premium.
Altering our land tax regime would enable us to charge this premium from foreign investors and potentially decrease their activity without necessarily decreasing supply of new stock. This can be done by increasing the land tax payable by non-Australian citizens who own property in our country and at the same time, decrease the rate of land tax charged on property owned by Australian citizens, with all property purchased in the future and currently held, being subjected to these changes. Obviously, the amount of these alterations will need to be modelled and the changes would need to be phased in.
The consequence is clear. Foreign investment activity would be marginally reduced (depending on the altered tax rate applicable to them) and the lower tax rates for Australian citizens should cause increased investment activity by this group. It should also mean that the first home owner may have a better chance of competing when buying.
The second, in my view, is a federal government matter
The first home owner has been forced out of the market simply as a consequence of rising house prices and the consequent level of income needed to support a home loan.
In essence we need to organise things so this group – and everyone buying a property to live in – has adequate cash flow to meet the high home loan repayments. This will particularly be the case when interest rates increase in the medium term.
A relatively simple change to the capital gains tax (CGT) legislation is required.
This change would allow home owners to claim interest deductions on their home loan repayments where they elect to be subject to normal capital gains tax on the profit they make on any future sale of the property. In essence they exchange the right to have their home exempt from capital gains tax in exchange for the right to immediately reduce their taxable income by the interest they are paying on their home loan.
Being brutally honest given the government’s current budget problems they should simply just phase in the removal of the capital gains tax exemption on the family home all together and automatically provide first home owners who buy a new home with the right to claim interest deductions. Politically this might be better for government than altering pension rights and health benefits etc.
Allowing buyers to elect to claim interest as a deduction would mean an improved annual cash flow which will help to make housing more affordable. What is the cash benefit? Well assume someone has a loan of $400,000 and has a tax rate of 22% then the annual benefit at current interest rates would be in the order of $5,000 per annum or roughly about $100 per week.
The impact of this proposal on borrowers as interest rates increase should also not be overlooked. That is, deductibility means that interest rate increases will not have as large a negative impact on our first home owner as they would otherwise. As interest rates increase their deductions increase and their tax liability is reduced. Hence as interest rates rise, defaults on home loans are likely to also be lower.
There needs to be some detailed modelling to work out a progressive phasing in and potentially define a percentage of the interest cost on the home loan that would be allowed to be deductible. Once this is done then a reasonably solid estimate of the cost to the federal budget could be identified.
From any logical perspective, a combination of subjecting all of our owner occupied housing to a form of capital gains tax and allowing our first home owners to access interest tax deductions, does have merit. And provided it is structured in a manner which does not drive housing prices higher, it will also make housing affordable for the next generation.
The negative which could be seen as a benefit by some, is that it would encourage home owners to limit their trading activity in their own home. That is, a home owner would potentially be less inclined to use their home as trading stock and instead use it as a mechanism for wealth generation by buying with the intent of selling following renovation.
In the short-term we are going to be asked to accept some difficult decisions and perhaps the above, implemented carefully by government could potentially soften the perceived blow.
John Edwards is consulting analyst for <a href="https://www.onthehouse.com.au/" target="_blank" rel="nofollow">Onthehouse.com.au</a> and founder of <a href="https://www.residex.com.au/" target="_blank" rel="nofollow">Residex</a>.
</body></html>

jedwards-8kHM8GNY6d

Two brave budget decisions that would benefit tomorrow’s generation

<html><body>
Speculation that the federal government might lift the age at which people can access their superannuation savings to 70 years should not concern people who have invested in property through a self-managed superannuation fund, a technical expert has said.
Federal Treasurer Joe Hockey last week gave strong indications that the age of eligibility for the government pension is likely to be lifted to 70 years over time while access to other government benefits for older people will also be restricted.
The statements have fuelled fears that the so-called preservation age at which people can access superannuation savings will also be raised.
But SMSF Professionals Association of Australia director technical and professional standards Graeme Colley told Property Observer that an increase to the preservation age for superannuation might advantage people who hold property in their fund.
“It might be an advantage because the longer they hold a property, the greater the likelihood of capital gains,” Colley said.
Many people who own investment property through an SMSF are forced to sell when one of the members retires if the property does not generate sufficient cash flow to pay a pension from the fund.
Colley said an increase to the preservation age for superannuation would probably be accompanied by an increase to the age at which people can make personal and voluntary contributions to their funds.
As the rules stand now, all working people can receive superannuation guarantee payments from employers into their funds, regardless of age. However, while people aged under 65 can also make voluntary or personal contributions to their funds, those aged between 65 and 75 years must meet a work test to be able to do so.
People aged over 75 are unable to make any personal or voluntary payments into their funds.
SMSFs that have borrowed to invest, particularly those that have negatively geared property, often need to sell if members can no longer contribute to the fund to make up the shortfall in cash flow.
Giving older people who were no longer working the ability to make personal contributions to superannuation would allow them to hold their property in the fund for longer, providing the advantage of holding the asset in the low-tax superannuation environment.
“The longer it is, the better it is,” Colley said.
He added there was a risk for government that lifting the superannuation preservation age beyond the planned graduated increase to age 60 by 2024 and aligning it with the age pension age could backfire and put unintended pressure on other parts of the social security system. 
Amounts accumulating in superannuation are excluded from the assets tests that determine whether people qualify for social security payments.
Older people currently moving from the workforce to the age pension, topped up with superannuation benefits, could be forced to rely on other social security payments such as the Newstart Allowance if they were unable to find work but were too young to access their superannuation or the age pension, Colley said. 
</body></html>

zfielding-GvX3Uq9KTa

Rise in pension age should not worry SMSF investors

<html><body>
Business groups have hit out against the federal government’s so called “debt levy”, saying a potential increase in personal income tax in next month’s budget would unfairly hit small businesses.
<a href="https://www.afr.com/p/national/business_says_no_to_deficit_tax_aA1PXsBY1lVZrKsP834C9I" target="_blank">Fairfax reports</a> Prime Minister Tony Abbott has not ruled out a temporary increase to income tax to address the current budget deficit and a senior source has said that the levy is “on the table”.
The speculation comes as Abbott and Treasurer Joe Hockey continue their efforts to <a href="https://www.smartcompany.com.au/legal/politics/41665-hockey-s-budget-roadmap-industry-assistance-age-pension-and-welfare-payments-on-treasurer-s-hit-list" target="_blank">soften the public reaction to the budget</a>. This year’s budget is expected to outline ambitious plans to dramatically reduce government spending in a bid to find a way back to surplus in the next 10 years.
Head of policy at CPA Australia, Paul Drum, told SmartCompany that “it should not be forgotten that the majority of businesses are unincorporated” and that “lifting income tax rates, even on a one-off basis, will hit small business hard and may act as a disincentive for consumer spending and business investment.”
Australian Chamber of Commerce chief operating officer John Osborn told Fairfax an increase in personal income tax would be inconsistent with the government’s plans to offer tax relief to businesses through the scrapping of the mining and carbon taxes and cutting company tax.
“This would be unfair and inconsistent for small business,” said Osborn. “Any income tax [increase] would be an unwelcome surprise from a new government that promised no new taxes and no surprises before the election.”
Australian Industry Group chief executive Innes Willox also slammed the proposal, saying a tax increase would have a negative effect on private sector demand, which is already feeling the effects of below-trend economic growth and flat labour market conditions.
“Raising income tax rates inflects a heavy excess burden on the working of the economy and is likely to do more harm than good,” said Willox.
However, Drum said “speculating on hypothetical tax adjustments, in isolation, is very difficult and may not be helpful”.
“This pre-budget period, with all the leaks and unconfirmed initiatives – from <a href="https://www.smartcompany.com.au/legal/politics/41533-are-you-ready-to-work-until-you-re-70-hockey-flags-plans-to-raise-retirement-age" target="_blank">pensions</a> to health co-payments to the ABC and CSIRO – is wearing us all down. The idea of a budget is that all measures are taken together [and] that’s what we need to see,” he said.
This article first appeared on <a href="https://www.SmartCompany.com.au">SmartCompany</a>.
</body></html>

Business groups hit out at federal government's 'debt levy'

<html><body>
There is a lot of pressure on the Barnett government to cut costs and raise revenue in the state budget this May.
Those of us who work in the property sector are particularly concerned that property taxes might again be targeted. In last year’s budget the government increased land tax by 12.5%.
This year it might be very tempting for the Treasurer to cast his net more widely by increasing stamp duty across the board for all buyers as well as scrapping the stamp duty exemption for first home buyers.
The Real Estate Institute of Western Australia has cautioned the state Treasurer against considering such moves. The property market in WA is only just stabilizing after several volatile years and current REIWA data indicates a market downturn for the second half of this year.
It’s critical that current policy settings remain in place and property taxes are not increased, distorting a fragile market.
Typical stamp duty on a median priced home in Perth is now $20,000. Bracket creep alone has pushed this up by $4,280 over the last five years.
The stamp duty exemption for first home buyers was raised to homes under $500,000 by the Labor government in 2007 and along with the first home owners grant has been extraordinary successful at nurturing the market.
Cost of living and housing affordability is much tougher in WA than other states, but removing the stamp duty impost from first home buyers saves most of them around $14,000 and helps them into a home of their own.
<blockquote>
It’s critical that current policy settings remain in place and property taxes are not increased, distorting a fragile market.
</blockquote>
In combination with low interest rates, first home buyers have flourished in WA but the signs are that they are now trending downwards and it would be devastating if they soon get hit with stamp duty.
Getting rid of first home buyer relief or increasing stamp duty across the board would also hit the housing construction sector through the increased cost of land.
The clear evidence from NSW, which recently scrapped its tax concessions for first home buyers, is that first home buyer activity collapsed and hasn’t recovered.
It has been a similar experience in Victoria where other concessions for first home buyers were removed or diminished.
First home buyers are critical to the overall health of the property market because they help nurture construction and facilitate the trade-up market.
Data from the Office of State Revenue show activity by first home buyers has been falling for several months, slipping from 1,974 applications in July last year to 1,540 in March.
For a sustainable, affordable housing market, it’s terribly important there is no rise in stamp duty for all buyers or that tax relief for first time buyers is abolished.
This article was originally published on <a href="https://reiwa.com/" target="_blank">reiwa.com</a>.
</body></html>

dairey-MVZf5ZguQC

The WA budget's threat to first home buyers

<html><body>
Slated negative gearing and property tax changes are discussed almost every year, but it is increasingly likely that the upcoming May budget is one of the most likely to include changes to this policy.
Property Observer reported a year ago that <a href="/expert-insights/finance/government-not-contemplating-changes-to-negative-gearing-wayne-swan">former treasurer Wayne Swan was not contemplating any changes at the time</a>, despite much discussion about negative gearing alterations. It appears that current treasurer Joe Hockey, however, may have different ideas.
But who is going to get stung by changes, if there are any? Propell National Valuers shares their thoughts about how residential real estate may see its owners becoming stung with the implications.
They point to the following:
1) WHAT: The exemption of the family home from asset calculations when achieving the pension may come under scrutiny.
WHY: It can encourage retirees to be asset rich and income poor, encouraging them to own and live in a property that's bigger and more expensive than they need. This will become even more pronounced if the <a href="/expert-insights/joe-hockey-flags-plans-to-raise-retirement-age">extra five years in the workforce, as suggested by Joe Hockey, is brought in</a>.
THE IMPACT: Retirees with properties above the median price may look to then sell these properties, cash out and downsize. This would be a one-off market impact that would soften prices in some sectors over the short-term, but would "likely be absorbed within a year," according to Propell.
2) WHAT: Taxation allowances of negative gearing could be abolished or curtailed.
WHY: The introduction in 1985 has seen tax revenue grow, from reducing personal income tax by $600 million originally to close to $4 billion, according to the Grattan Institute.
THE IMPACT: There would be enormous short-term political backlash. It would potentially result in the transfer of wealth from "one class of people to another and the losers have been first home buyers in particular", providing a benefit to our FHBs.
OTHER OPTIONS: Grandfathering negative gearing out, limiting it to new properties (both of which have been suggested on SBS), phasing it out or toughening the rules. The limitations of negative gearing to new properties has been suggested heavily in the media lately (citing off the record comments from different government departments). If you are an investor using negative gearing to offset your loss, then there is a chance here that you will find yourself facing a greater shortfall.
However, "If the system is not changed this year, then property investors can probably relax in the knowledge that it will become a permanent feature of the investment landscape," Propell suggests, noting that this year is the most likely in which it will happen.
We've previously taken it to the experts and <a href="/expert-insights/finance/should-negative-gearing-be-changed-the-experts-have-their-say">asked, 'Should negative gearing be changed?' Here are their opinions</a>.
</body></html>

jduke-EHk3XBmHkn

Who will get stung by negative gearing and tax changes?

<html><body>
Australian workers may be required to work until they are 70 years old, with Federal Treasurer Joe Hockey flagging the possibility of the government raising the retirement age for Australian workers in this year’s budget.
In <a href="https://www.theaustralian.com.au/national-affairs/prepare-for-a-retirement-age-of-70-joe-hockey/story-fn59niix-1226882446948?utm_source=The%20Australian&amp;utm_medium=email&amp;utm_campaign=editorial&amp;net_sub_uid=68625280" target="_blank">an interview with ABC TV</a>, Hockey said his generation may have to “work for an extra three years and we need to redesign our systems to manage that fact”.
The previous Labor government raised the retirement age from 65 to 67, which will come into effect from 2023. <a href="https://www.theaustralian.com.au/national-affairs/policy/pension-tests-facing-budget-axe/story-fn59nsif-1226883098733?utm_source=The%20Australian&amp;utm_medium=email&amp;utm_campaign=editorial&amp;net_sub_uid=87677912" target="_blank">The Australian</a> reports an increase in the retirement age to 70 may not come into effect until 2040.
While many <a href="https://www.smartcompany.com.au/people/industrial-relations/34750-australians-could-be-forced-to-work-into-their-80s-how-to-get-more-from-your-superannuation" target="_blank">Australian workers will need to work their entire lives out of financial necessity</a>, Pitcher Partners executive director of business advisory and assurance Adrian Fitzpatrick says a further change in the retirement age could be a positive thing for Australian businesses.
“Businesses can benefit from good employees staying on longer with the business,” Fitzpatrick told SmartCompany. “These employees often take on a mentoring role with younger employees and they can help with transitions.”
Fitzpatrick says the change is also a chance for employees to become more engaged in the business, as they have an opportunity to add additional funds to their superannuation savings.
“We often find that people become distracted if they are approaching retirement concerned about their superannuation,” says Fitzpatrick. “Employees who feel secure with their super are often more engaged.”
However, Fitzpatrick says it will be critical for businesses to manage salary expectations for workers who will be working longer. He says working arrangements will also need to be more flexible as older workers seek to balance work commitments with other interests such as travel and family time.
There is also a danger of companies becoming too conservative if they are dominated by older employees, says Fitzpatrick. He says it is important for businesses not to “dampen new business opportunities” that often come from young, entrepreneurial workers.
Hockey has also hinted at a possible change to the way the aged pension is indexed, moving from the current system, which links the pension to the average male weekly earnings, to a system whereby the pension would be linked to the inflation rate.
“I’m not going to speculate on the budget but I will note that … over the last 40 years 60% of male workers in the USA have had a real cut in their incomes,” said Hockey. “In Australia we haven’t had that. Male weekly total earnings have been at a higher rate but it is not always going to be the higher rate.”
Opposition finance spokesperson Tony Burke has criticised the government, which he said would be breaking a pre-election promise if it was to raise the retirement age. <a href="https://www.propertyobserver.com.au/https://www.abc.net.au/news/2014-04-13/joe-hockey-flags-changes-to-age-pension-eligibility-age/5386828" target="_blank">Burke told the ABC</a>  the change would hit blue-collar workers the hardest and would be a “very big deal” for individuals with small superannuation savings who may be required to do physical labour for longer.
While the proposed changes are not likely to come into effect any time soon, Fitzpatrick advises businesses owners to sit down with employees who are in their late 50s and early 60s to start planning now. “It’s never too early to start talking about these things,” he says.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
</body></html>

Joe Hockey flags plans to raise retirement age

<html><body>
Australia’s budget has deteriorated faster than any other developed nation’s in the past six months, as Treasurer Joe Hockey continues to prepare Australians for a tough May budget.
Just over a month away from the budget, the International Monetary Fund’s <a href="https://www.imf.org/External/pubs/FT/GFSR/2014/01/pdf/text.pdf" target="_blank">Global Financial Stability Report</a> released yesterday suggests a need for taxation changes in order <a href="https://www.smartcompany.com.au/legal/politics/41251-hockey-claims-labor-hid-spending-tsunami-as-small-business-prepares-for-painful-budget" target="_blank">to reel in the budget deficit.</a>
According to <a href="https://www.afr.com/p/national/imf_says_budget_fall_fastest_of_nreHL5ZcDI84gjokyEAp6H" target="_blank">The Australian Financial Review</a>the budget would need to improve by at least $50 billion by 2020 to bring gross debt down to 70% (or 4.7% of GDP).
Speaking in Washington yesterday, Hockey said IMF estimates showed Australia’s increased healthcare and pension spending alone, unless changed, would cost an extra $93 billion of government spending per annum by 2030.
“That is the equivalent of an extra $61 billion a year in today’s dollars or the equivalent of an extra 4% of today’s GDP,” he says.
To pay for the ageing population, Hockey says Australia will need to raise the equivalent of the existing company tax, indicating major changes will be needed to Australia’s taxation system.
Hockey says with the current budget deficit and below trend growth, there could be budget deficits for the next decade.
“We are now grappling with growth stubbornly below trend as our economy rapidly transitions from the end of the resources investment boom, with rising unemployment and a deteriorating budget position,” he says.
The latest figures from <a href="https://www.imf.org/external/pubs/ft/weo/2014/01/pdf/text.pdf" target="_blank">the IMF’s Global Economic Outlook report</a> released earlier this month show Australia is still struggling to recover from the slowdown in mining-related investment.
The Australian economy is tipped to remain 0.5 percentage points below the trend growth rate of 3% to 3.25%. The IMF predicts Australia’s growth will remain “broadly stable” at 2.6% in 2014.
In 2015, GDP is only tipped to have increased 0.1 percentage point to 2.7%.
JP Morgan chief economist Stephen Walters told SmartCompany Australia has struggled to adjust to the post-mining boom.
“However, in context we’ve had the biggest boom we’ve seen in 120 years, so it’s not a surprise we’re having an adjustment period,” he says.
“As other economies come out of a recession, in this context we seem sluggish, but we’ve avoided having a recession for 23 years.”
Walters says JP Morgan is anticipating Australia to grow at 2.75% this year and 3% in 2015.
“Our estimates are a bit below the Reserve Bank of Australia’s estimates. We think the economy is still in an adjustment period… and when an economy goes through an adjustment, some sectors of the economy shrink by comparison. This is being seen in manufacturing and mining,” he says.
“The economy will start to pick up though, and growth numbers are expected to be higher each year. By 2016 things will be looking better. There will be boosts to exporting markets and consumer spending and construction will be strong.”
Walters says looking forward Australia’s biggest challenges will be recovering from a high exchange rate and managing the relationship with China.
“There has been a big hollowing out of the economy, with the exchange rate being too high for many businesses such as the car manufacturers and SPC Ardmona,” he says.
“[In the budget] welfare looks like an obvious target to hit. Also on the agenda will be negative gearing, the pension age and in the long term possibly GST.”
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
</body></html>

yredrup-o4Anfe78KF

Australia's budget detoriated faster than any other developed nation in past six months: IMF

<html><body>
Modern governments believe that during budget framing, it is politically savvy to parade the pain. We saw it with Labor and the Coalition is doing the same.
There are scary scenarios of what would happen without remediation, with warnings about problem areas. Some surprises will be held for the night, but other measures will be strategically “leaked” beforehand.
Tony Abbott, in Perth campaigning for the West Australian Senate election, let it be known he was chairing Wednesday’s meeting of cabinet’s expenditure review committee.
Shadow treasurer Chris Bowen declared it was the first time in Australian history a PM had chaired the ERC, claiming it showed dysfunction at the highest level.
This was nonsense. The government could quickly counter that Bob Hawke, John Howard and Kevin Rudd had also done so.
But it was surprising Abbott gave such a high profile to this “razor gang” meeting.
The ERC is all about nasties and, after all, Labor is making the prospect of deep budget cuts a centrepiece of its WA Senate campaigning. Abbott seemed to be providing ammunition. On the other hand, he could take the view Labor had the bullets anyway so he might as well play the longer game.
Treasury secretary Martin Parkinson publicly chimed into the pre- budget debate with a speech reinforcing the government’s lines about spending growth in the big areas.
But Parkinson also sent a public message to the government for later about what it should do on taxation.
With Hockey shining attention on health and pension costs, Parkinson documented the escalation.
Total Commonwealth spending on health is set to rise from $64.7 billion in nominal terms in 2013-14 to $74.6 billion in 2016-17, and to $116 billion in 2023-24.
The Commonwealth’s three main pension payments - for the aged, those on disability support and carers – will grow at an annual 6% in nominal terms over the forward estimates, adding $13 billion to annual payments by 2016-17, and another $39 billion by 2023-24. “Of this nearly $52 billion in additional payments in 2023-24, compared to 2013-14, over half is a result of indexation with the remainder due to increases in the number of recipients.”
That seems a fair hint that both drivers are being looked at. It should be remembered that successive governments have been trying to curtail the numbers on the disability pension but it has seemed a losing battle. It’s never as easy as it looks in theory.
Parkinson then turned to the tax side. His argument, aimed well beyond this budget and directed squarely at the political masters he will leave in December, is crystal clear. Australia needs a tax system it relies more on indirect tax, less on direct tax. The king of indirect taxes is, of course, the GST.
Parkinson pointed to one rather surprising fact, given the tax debates we’ve been through over many years. “Despite reforms that broaden the tax base (such as the GST), and decisions that have lowered corporate and personal tax rates across the decades, the share of direct and indirect taxes (as well as Australia’s reliance on income taxes) has changed little since the 1950s.”
Australia had relatively high reliance on direct taxes as a proportion of revenue raised compared with other OECD countries, he noted, before observing that: “Research consistently says that reduced reliance on income taxes and increased reliance on other, more efficient sources of revenue, including indirect taxes, can support higher growth and higher living standards by increasing workforce participation and lifting productivity.”
The problem is that “without conscious change, Australia’s tax mix will move in the opposite direction as personal income tax increases through fiscal drag”.
“We will move even further in this direction if, as we anticipate, the relative share of total indirect taxes (including GST) continues its long-term decline. Contributing to this decline is the non-indexation of fuel excise (unlike other excise rates) and a rising proportion of consumption outside the GST net, for example, in increased health expenditure.”
Parkinson warned that “continued increases in the personal income tax burden will hit lower and middle income earners with higher marginal and average tax rates. This will have adverse labour force participation impacts, while sharpening incentives for tax minimisation by higher income earners”.
The globalised economy meant Australia would be under pressure to cut the company tax rate.
“Given the pressure to return fiscal drag and to reduce the burden of corporate income tax, it will be a challenge to maintain the current levels of revenue over the medium term, let alone the increases required to achieve the budget projections.”
In the past, Parkinson said, tax reform had largely been pursued through broadening tax bases as an offset for lowering tax rates.
“However, a key challenge for the upcoming White Paper on Taxation will be to consider the mix of taxes, including whether there is a role for a greater contribution from indirect taxes.”
The opportunity were there to plot a path to a better tax system and the dangers clear if it was not done.
“If we do not start making these changes and simply keep drifting along we will be increasingly vulnerable to the next global crisis and will also lose out on the opportunities presented by the rising Asian middle class. The exceptionalism of this ‘lucky country’ will become just a distant, ironic memory and our children may really end up ‘doing it tough’”.
So there you have it. Parkinson, axed by the government (though extended until year’s end) won’t be around for the battles after the white paper, which has a long time table.
But he has signposted another lot of unpalatable truths. In terms of painful decisions ahead, this budget is only the start of it for the Abbott government, which hates the idea of tax increases, fears the politics of a robust debate about needing a higher, broader GST and has promised to take any major tax changes to the election.<img src="https://counter.theconversation.edu.au/content/25161/count.gif" alt="The Conversation" width="1" height="1" style="line-height: 1.3em;">
Michelle Grattan is professorial fellow at the <a href="https://www.canberra.edu.au/" target="_blank" style="line-height: 1.3em;">University of Canberra</a>.
This article was originally published on <a href="https://theconversation.com" target="_blank">The Conversation</a>.
</body></html>

Treasury boss hints at the need for a broader GST

<html><body>
We’ve now entered the traditional pre-budget softening-up period in which treasurers engage in expectations management ahead of the fiscal set-piece of the year in May. But even given that, Joe Hockey is treating us as complete idiots.
The line Hockey has been pushing for some days now, and which he gave a big push to yesterday in a flurry of media appearances, is that not merely did Labor hide the level of deficits in the current budget cycle, but that it left a series of hidden spending commitments in the unpublished years beyond forward estimates. Hockey has been circulating a document to journalists portrayed in the media as a “Treasury analysis” that shows how “the Coalition inherited an unsustainable budget position” and Labor “hid [expenditure] from the public”. Hockey would like us to see him as a budgetary innocent who has found himself in the middle of a fiscal minefield planted by Labor.
<a href="https://media.crikey.com.au/wp-content/uploads/2014/04/BRIEFING-NOTE.pdf"><img class="aligncenter size-full wp-image-431677" src="https://media.crikey.com.au/wp-content/uploads/2014/04/2014-04-01_11-33-411.jpg" alt="" width="520" height="180"></a>
Well <a href="https://media.crikey.com.au/wp-content/uploads/2014/04/BRIEFING-NOTE.pdf" target="_blank">here’s the document</a>, and it isn’t a “Treasury analysis” — it’s prepared by Hockey’s media adviser, former Australian Financial Review journalist Gemma Daley. And if Hockey seriously expects us to believe his latest argument, he must have nothing but contempt for us. This is Hockey yesterday: “We didn’t anticipate that everything else would be of equal or larger scale as a tsunami coming across the water. The fact is Labor’s left us with a massive forecast increase in foreign aid, a massive increase in defence – for example in one year, there’s meant to be a real increase in defence spending of 13%, a 66% increase in foreign aid.”
<blockquote>
Hockey would like us to see him as a budgetary innocent who has found himself in the middle of a fiscal minefield planted by Labor.
</blockquote>
At another media conference, he said: “If no action was taken on the budget, what the fifth-year deficit would look like, contrary to what both Labor promised was a surplus, if no action was taken, based on the approximately 6% increase in expenditure between the fourth year and the fifth year, which Labor locked in on NDIS, on Gonski, on overseas aid, on hospitals, on defence …”
Well, um, tsunamis are actually tiny when they’re on the ocean — but never mind that, let’s look at the detail. Labor in fact revealed the funding for the National Disability Insurance Scheme — or DisabilityCare as it had been renamed — in the budget last May, with new spending broken down out to 2019:
<img class="aligncenter size-full wp-image-431667" src="https://media.crikey.com.au/wp-content/uploads/2014/04/2014-04-01_11-24-28.jpg" alt="" width="501" height="179">
In addition to the numbers in the budget papers, there was a specific “glossy” with funding graphs for <a href="https://budget.gov.au/2013-14/content/glossy/NDIS_policy/download/NDIS.pdf" target="_blank">DisabilityCare</a> and one for <a href="https://budget.gov.au/2013-14/content/glossy/gonski_policy/download/NPSI.pdf" target="_blank">education funding</a> as well, which was still being finalised in deals with the states. The increase in foreign aid was also in both the budget papers and a <a href="https://budget.gov.au/2013-14/content/ministerial_statements/download/AusAid_MS.pdf" target="_blank">ministerial statement by Bob Carr</a>  — not that the government got any credit for it, because it was actually a reduction, with the government’s Millennium Development Goal commitment to lifting foreign aid to 0.5% of gross national income put back another year to 2017. The government spelt out its planned increase in foreign aid up to and including 2017-18.
In fact in question time last week, Labor invited the Prime Minister to spell out the government’s MDG policy, which he duly did: aid is to reach 0.5% of GNI when the budget returns to surplus. Which raises the question of why, in Hockey’s Mid-Year Economic and Fiscal Outlook in December, Hockey left Labor’s MDG aid funding increase intact, in defiance of the government’s own policy. The answer, of course, was that it would inflate the budget deficit for 2017 and beyond.
As for defence, the Gillard government <a href="https://www.minister.defence.gov.au/2013/05/14/minister-for-defence-budget-2013-14-defence-budget-overview/" target="_blank">gave the portfolio a “guidance”</a> that it would receive around $220 billion in the six years from 2017-18, which Hockey’s document proposes to mean funding would leap 13% in 2017, when in fact the “guidance” reflects a growth rate in defence spending from 2017 lower than the average between now and 2017 of nearly 7%. And remember that Labor was repeatedly criticised fordecreasing defence spending — every armchair general and arms industry lobbyist in the joint was whinging about how we weren’t spending enough taxpayer money on buying gear from the US military-industrial complex. “Military spending slumps to 1930s level,” The Australian’s <a href="https://www.theaustralian.com.au/opinion/columnists/military-spending-slumps-to-1930s-level/story-e6frg74x-1226352458112" target="_blank">Paul Kelly shrieked</a>. The 1930s theme — hint,appeasement!­ —  was picked up by the Coalition, including Tony Abbott and Barnaby Joyce. Abbott “aspired”, he said, to lift defence spending to 3% of GDP.
So, Labor were both neo-Chamberlain surrender monkeys for not spending enough on defence when in government and now, magically, reckless spendthrifts who committed too much to defence at the same time.
Hockey’s fiscal innocent act is a little hard to believe given we were told what an exhaustive, indeed exhausting, shadow ERC process Hockey was leading within the opposition at the time to establish its fiscal credibility.
And above all, there’s this point: if Hockey seriously believes his own claims about the budget beyond forward estimates, why did he remove Labor savings measures that offset future spending? Why did he remove the 15% tax on superannuation income over $100,000 a year, costing the budget billions beyond forward estimates, for the benefit of high income earners? Why did he restore the Fringe Benefits Tax rort on novated leases — remember Joe being photographed in front of a sports car? And why have Hockey and his leader pushed for the abolition of the mining tax, which even in its crippled form, according to Hockey’s own MYEFO, is worth more than $3 billion over forward estimates? Eventually it will be the only way of recovering some of the profits offshore owners of LNG and iron ore projects will make and ship overseas (over 60% of these projects are foreign owned or controlled).
Then there’s the silly decision to hand $8.8 billion of borrowed money to the Reserve Bank in one hit, when it doesn’t need the capital. And the sale of Medibank Private — a $4-5 billion contribution to the budget — will be spent on roads because Abbott wants to be an “infrastructure prime minister”, when it could cut the budget deficit or the debt. That could be $13-14 billion off the deficit and debt right there — or an interest saving of more than half-a-billion dollars a year.
Hockey is talking about sharing the budget burden around, but that’s only after the government plans to increase its own spending for political purposes and sought to hand billions of dollars in tax revenue back to foreign mining companies, large carbon emitters and the well-off in the community — revenue that would have offset exactly the spending on education, disability and foreign aid that Hockey is now claiming to have only just discovered.
This article originally appeared on <a href="https://www.crikey.com.au/" target="_blank" rel="nofollow">Crikey</a>.
</body></html>

Budget

Editor's Picks

Have something to contribute?

Developments

New apartments

New townhouses

News

Budget

Editor's Picks

Receive the latest news stories to your inbox

Have something to contribute?

Developments

New apartments

New townhouses

News