2014/15 Budget - good for investors?
- Thread starter Scott No Mates
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Steve McKnight says this in his blog:
2. Economic Activity
The budget is claimed to be neutral in its impact to the economy, and economic growth is forecast to be below trend until 2016. It?s certainly not a stimulus budget, and is more likely to result in economic contraction as people become uncertain about their financial futures. I expect this will lead to lower consumer confidence and less spending in the short term, and as such will put something of a wet blanket on the property market until at least Spring.
http://www.propertyinvesting.com/bu...l&utm_source=facebook.com&utm_campaign=buffer
Steve McKnight also had some advice for ACT owners before Budget announcement.
I spoke to a senior customer service officer in one of the Big 4 today. She told me that a lot of people she's speaking to are scared and uncertain, they told her that they're already finding it so difficult to make ends meet, they don't know how they will cope.
Do we care? Naaaaaah!
Go to a corner and keep repeating it till you believe it 'The Budget is going to be good for the property market' 'The Budget is going to be good for the property market'
2. Economic Activity
The budget is claimed to be neutral in its impact to the economy, and economic growth is forecast to be below trend until 2016. It?s certainly not a stimulus budget, and is more likely to result in economic contraction as people become uncertain about their financial futures. I expect this will lead to lower consumer confidence and less spending in the short term, and as such will put something of a wet blanket on the property market until at least Spring.
http://www.propertyinvesting.com/bu...l&utm_source=facebook.com&utm_campaign=buffer
Steve McKnight also had some advice for ACT owners before Budget announcement.
I spoke to a senior customer service officer in one of the Big 4 today. She told me that a lot of people she's speaking to are scared and uncertain, they told her that they're already finding it so difficult to make ends meet, they don't know how they will cope.
Do we care? Naaaaaah!
Go to a corner and keep repeating it till you believe it 'The Budget is going to be good for the property market' 'The Budget is going to be good for the property market'
And there we have it, the economy according to one guy, and a customer service rep from a bank.
And let's not get to the fact that even if the budget were 'bad' for property, you can't put self interests ahead of the financial health of a nation.
And let's not get to the fact that even if the budget were 'bad' for property, you can't put self interests ahead of the financial health of a nation.
But I'm just a self-interested property investor! 
Isn't this the purpose of this thread - to determine if the budget 2014/2015 is good for investors? And what's people's take on things?
Isn't this the purpose of this thread - to determine if the budget 2014/2015 is good for investors? And what's people's take on things?
Dulce et decorum est pro patria mori
I've always found latin phrases tacky.
"ask not what your country can do for you? ask what you can do for your country."
When's the last time you heard the average Joe say how they wanted to help Australia, than expect something from it?
Screaming Drama Queen
The Budget has been on an unsustainable footing since the Liberals got booted out Govt by the Australian population in Nov 2007.
No entity, whether it be a Federal Govt, a State Govt, a Local Govt, a business - large or small, a community group, a volunteer organisation, a sporting organisation, a household or an investor can continue to spend more than they earn year in year out and not get into very serious trouble.
The annual Budget, the culmination of every single revenue source taxed by the Govt compared with every single expense for every single good and service provided by the Govt, is the best way of judging how the nation is travelling.
The Howard Govt delivered 10 out of 11 surplus Budgets. They were disciplined and they were frugal. Not only did they run the nation properly, they also were determined to eliminate the stinking big debt pile left for them by the previous Hawke and Keating Labor Govts...who kept adding to it.
By 2006 it was fully paid off. Unbelievable effort. The country had no net debt and was sitting pretty.....ready for any major shocks that may have been around the corner. Who knew ??
In their last year they really cracked on, and by the time smooth as silk Rudd appeared on our TV screens as a "me too me too fiscal conservative", they had a debt to GDP ratio of -3.4%. That's right....we had cash in the bank and owed nothing.
What was the prize ?? Kicked out on their ear. Banished in favour of a new kid on the block, with zero experience in running a business, zero experience in managing anything and a Cabinet team who were all as green as grass with no experience having been twiddling their thumbs in opposition for 11 years.
Oh well. Whatever sounds good on the 5 second TV sound bite. Forget the bigger details. Off we go.
Wind the clock forward after the most destructive, dysfunctional and poisonous Govt the nation has ever witnessed (yes I know, difficult to beat Whitlam for the honour but I reckon they did it) and we've had a trail of failed Budgets.....with broken promises as far as the eye can see.
Who remembers Wayne Swan's famous 2010 Budget when he stated that the Budget would be back in surplus by 2012. Gillard said "Failure was not an option." They failed. Instead of a promised 1.5 Billion surplus, it ended up being a whopping $ 47 Billion deficit. Hmmm. Who paid for that ??
We did....and continue to pay for it every month in interest payments. The debt itself is such a huge problem, we don't have the ability to even look at paying it back yet. Until and unless the Budget is back under control, nothing can progress.
I don't think those that are whining fully comprehend that point.
The Australian population kicked Labor out on the 7th of Sept because they were a divided, dysfunctional, incompetent, financial disaster zone lurching from one hair-brained pink batts, over priced school hall, open the flood gates scheme after the other. Everything they touched turned to ****.
In their own words "we lost our way".
The current Federal Cabinet is chock full of experienced Ministers. They know what they are doing. I'd personally like to see Costello back in the Treasurer's chair, but alas, times move on.
The mountain of Labor debt left behind like a festering turd on the shagpile is a hell of a lot more than Howard and Costello faced in 1996, so I don't envy their monumental task ahead of them.
Labor will never clean it up. They think it is just fine and dandy....happy to add to it even further. Joy. This revolving door of party boy Labor trashing the joint and cleaning lady Liberals mopping up the disaster zone until it is clean and the being booted out for the party again to trash has to stop.
Looking at the BS budget in reply speech....I hold no prospect of that.
Give it 9 years I reckon, 3 terms. The clown above predicting 1 Term is a joke. The Liberals will clean up the majority of the mess, Labor will put up some smooth as silk front man like a Jason Clare and the population will once again go for spin over substance and put Labor back in.
Then the debt will skyrocket again....
Being competent does not equate to being popular. I agreed with one commentator when they said this Budget was like some 'grumpy sensible old Uncle'. It may be good for the nation, but doesn't mean they make themselves popular.
Elections however are popularity contests, not scorecards on competency.
The Budget has been on an unsustainable footing since the Liberals got booted out Govt by the Australian population in Nov 2007.
No entity, whether it be a Federal Govt, a State Govt, a Local Govt, a business - large or small, a community group, a volunteer organisation, a sporting organisation, a household or an investor can continue to spend more than they earn year in year out and not get into very serious trouble.
The annual Budget, the culmination of every single revenue source taxed by the Govt compared with every single expense for every single good and service provided by the Govt, is the best way of judging how the nation is travelling.
The Howard Govt delivered 10 out of 11 surplus Budgets. They were disciplined and they were frugal. Not only did they run the nation properly, they also were determined to eliminate the stinking big debt pile left for them by the previous Hawke and Keating Labor Govts...who kept adding to it.
By 2006 it was fully paid off. Unbelievable effort. The country had no net debt and was sitting pretty.....ready for any major shocks that may have been around the corner. Who knew ??
In their last year they really cracked on, and by the time smooth as silk Rudd appeared on our TV screens as a "me too me too fiscal conservative", they had a debt to GDP ratio of -3.4%. That's right....we had cash in the bank and owed nothing.
What was the prize ?? Kicked out on their ear. Banished in favour of a new kid on the block, with zero experience in running a business, zero experience in managing anything and a Cabinet team who were all as green as grass with no experience having been twiddling their thumbs in opposition for 11 years.
Oh well. Whatever sounds good on the 5 second TV sound bite. Forget the bigger details. Off we go.
Wind the clock forward after the most destructive, dysfunctional and poisonous Govt the nation has ever witnessed (yes I know, difficult to beat Whitlam for the honour but I reckon they did it) and we've had a trail of failed Budgets.....with broken promises as far as the eye can see.
Who remembers Wayne Swan's famous 2010 Budget when he stated that the Budget would be back in surplus by 2012. Gillard said "Failure was not an option." They failed. Instead of a promised 1.5 Billion surplus, it ended up being a whopping $ 47 Billion deficit. Hmmm. Who paid for that ??
We did....and continue to pay for it every month in interest payments. The debt itself is such a huge problem, we don't have the ability to even look at paying it back yet. Until and unless the Budget is back under control, nothing can progress.
I don't think those that are whining fully comprehend that point.
The Australian population kicked Labor out on the 7th of Sept because they were a divided, dysfunctional, incompetent, financial disaster zone lurching from one hair-brained pink batts, over priced school hall, open the flood gates scheme after the other. Everything they touched turned to ****.
In their own words "we lost our way".
The current Federal Cabinet is chock full of experienced Ministers. They know what they are doing. I'd personally like to see Costello back in the Treasurer's chair, but alas, times move on.
The mountain of Labor debt left behind like a festering turd on the shagpile is a hell of a lot more than Howard and Costello faced in 1996, so I don't envy their monumental task ahead of them.
Labor will never clean it up. They think it is just fine and dandy....happy to add to it even further. Joy. This revolving door of party boy Labor trashing the joint and cleaning lady Liberals mopping up the disaster zone until it is clean and the being booted out for the party again to trash has to stop.
Looking at the BS budget in reply speech....I hold no prospect of that.
Give it 9 years I reckon, 3 terms. The clown above predicting 1 Term is a joke. The Liberals will clean up the majority of the mess, Labor will put up some smooth as silk front man like a Jason Clare and the population will once again go for spin over substance and put Labor back in.
Then the debt will skyrocket again....
Being competent does not equate to being popular. I agreed with one commentator when they said this Budget was like some 'grumpy sensible old Uncle'. It may be good for the nation, but doesn't mean they make themselves popular.
Elections however are popularity contests, not scorecards on competency.
Dazz but particularly CJay, you fail Capitalism 101 and you disappoint neoliberals sorely. Adam Smith described self-interest and competition in a market economy as the "invisible hand" that guides the economy.
In Adam Smith's lasting imagery, "By directing that industry in such a manner as its produce may be of greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention".
Get some education, guys. Oh sorry! That education you need will cost an additional $100,000 now...
I can rebut a lot of things you've stated in your long post
and back it up with facts and figures from economists and oh yes, even Peter Costello's recent statements which contradict the current mob
but I'm too sleepy now. Yawn!
It is close to midnight in Melbourne.
So be a good boy and go somewhere else and play, okay?
That education you need will cost an additional $100,000 now...
Im not sure where people keep getting this idea from that uni is or will be expensive. Have you heard of supply and demand? I learnt about it in Economics in Year 11 with some old bald guy whose name escapes me. Do you think universities want no students? Or not to have a reputation of getting good resultant careers post-study? Or not to be seen as good value? Or not to be competitive with other universities?
Couple points to remember...it was the Howard govt which handed out middle class welfare....they handed out increases in pensions...though labor did top it up...the other thing people quickly forget is that labor navigated OZ through the GFC. If spending would have been cut Australia would have headed down the path of likes of Europe.
As for running a business ...companies which only focus on the expense side always fail. They need to take a balanced view. This govt is needs to look at how to create jobs and increase GDP...as this will decrease the percentage of GDP..having said that I feel some of the middle class welfare needed to have been wound back. The cuts to pensioners and other less fortunate will hit them at the next poll. They could have broadened the tax base and this would have resulted in more savings.
Would suggest you revisit your economy books.....the policies set out this govt is going to further hurt the economy and cause a crisis in confidence. When you cut spending...people also spend less. What I did not see was policies to create or encourage investment or jobs.....time will tell....but the next election is going to be interesting....the traditional senior base votes labor...they will have also angered the middle class....
This is a govt with zero integrity as it is scaremongering .....there is not crisis in Australia...this is just a lib party political con job!
As for running a business ...companies which only focus on the expense side always fail. They need to take a balanced view. This govt is needs to look at how to create jobs and increase GDP...as this will decrease the percentage of GDP..having said that I feel some of the middle class welfare needed to have been wound back. The cuts to pensioners and other less fortunate will hit them at the next poll. They could have broadened the tax base and this would have resulted in more savings.
Would suggest you revisit your economy books.....the policies set out this govt is going to further hurt the economy and cause a crisis in confidence. When you cut spending...people also spend less. What I did not see was policies to create or encourage investment or jobs.....time will tell....but the next election is going to be interesting....the traditional senior base votes labor...they will have also angered the middle class....
This is a govt with zero integrity as it is scaremongering .....there is not crisis in Australia...this is just a lib party political con job!
Howard was also in charge the time that large numbers of the unemployed we allowed to be transferred to the disability pension so they were not counted as unemployed.
So are you saying that there are people on the DSP that shouldn't be?
This is known as 'projection' in Psych 101. You are denying that the Liberals had any broken promises while attributing and associating broken promises only with the Labor party. This is the litany of broken promises by Tony Abbot's government so far and every Joe on the street knows it:
"We will be a no surprises, no excuses government, because you are sick of nasty surprises and lame excuses from people that you have trusted with your future..." (Tony Abbot, September 2013)
Health
"No cuts to education, no cuts to health" (Tony Abbott, September 2013)
When asked about introducing a $6 co-payment to visit the GP in February 2014 on ABC, Abbott said:
"As a health minister in a former government, I used to say that government was the best friend Medicare has ever had. This leopard doesn't change his spots and I want this government, likewise, to be the best friend Medicare has ever had."
When asked about introducing a $6 co-payment to visit the GP in February 2014 on ABC, Abbott said:
"As a health minister in a former government, I used to say that government was the best friend Medicare has ever had. This leopard doesn't change his spots and I want this government, likewise, to be the best friend Medicare has ever had."
$7 co-payment to visit the GP, effectively ending free visits to the doctor.
"We are not shutting any Medicare locals". (Tony Abbott, August 2013)
All 61 Medicare Locals will now be scrapped and replaced with new local health networks.
Education and Health
"I want to see our hospitals and schools improving as we invest the proceeds of a well-run economy into the things that really count". (Tony Abbot, September 2013)
Tuesday's budget imposed an $80 billion cut to schools and hospitals over the next decade.
Proceeds from fuel excise tax will go into building more roads, not improving public transport or improving schools and hospitals.
Taxes
"No one's personal tax will go up" (Tony Abbott, March 2012)
The Treasurer confirmed a deficit levy would be imposed on people who earn incomes over $180,000.
Pensions
"No changes to pensions" (Tony Abbott, September 2013)
Tuesday's budget confirmed age and disability pensions will fall behind wages growth from 2017 after they are instead indexed to inflation.
Foreign Aid
"From 2014/15, the $5 billion aid budget will grow each year in line with the Consumer Price Index" (Foreign Minister Julie Bishop, January 2014)
The Treasurer revealed foreign aid would be frozen, leading to a massive $7.6 billion cut over next 5 years.
Indigenous affairs
"The Coalition will continue the current level of funding expended on Closing the Gap activities." (Coalition policy document, September 2013)
Tuesday's budget cut $500 million through the consolidation of 150 programs.
Environment
"ARENA will have over $2.5 billion in funds to manage." (Industry Minister Ian Macfarlane, November 2013)
The ARENA (the Australian Reneweable Energy Agency) has been axed.
"The Coalition will promote the use of solar energy by Australian families and households. It will ensure at least one million additional solar homes or community centres by 2020." (Greg Hunt, December 2011)
Tuesday's budget scrapped the government's Direct Action policy to fund rebates for the installation of solar panels and deliver 1 million solar roofs.
Changes to Newstart and Youth Allowance
"We must be a country that rewards people for having a go, but we must never leave anyone behind" (Tony Abbot, September 2013 campaign launch speech)
"We know that a stronger economy is not about picking winners but about helping everyone to get ahead". (Tony Abbot, September 2013)
"We know that a stronger economy is not about picking winners but about helping everyone to get ahead". (Tony Abbot, September 2013)
From January 1 2015, all under-30s who want to sign onto Newstart or Youth Allowance after losing a job or or not being able to find one, will be forced to wait six months before they receive a cent of government money, after which they will have to work for the dole for another six months (25 hours per week) before either getting a job, or getting cut off again for another six months.
The eligibility age for Newstart will rise from 22 to 25 years. That means a young person who loses a job or can't find a job will have to keep receiving only the Youth Allowance rather than Newstart from age 22 to 25. Newstart is worth about $45 more a week for a single person living apart from their parents than the Young Allowance ''Other'' payment.
THE WORST DEFICIT IS NOT THE BUDGET DEFICIT BUT THE TRUST DEFICIT
(Tony Abbot, September 2013 campaign launch speech 2013)
"We will be a no surprises, no excuses government, because you are sick of nasty surprises and lame excuses from people that you have trusted with your future..." (Tony Abbot, September 2013)
Tony Abott has breached the trust of the Australian people with a string of broken promises and lies, how are we supposed to keep trusting his government to govern the country for the good of the people?
'Nation before self', 'Budget deficit must be under control' - Some of you keep chanting
Did Tony Abbot put nation before self when he made those promises?
No, he put self-interest first in order to get elected. Made a string of promises and lies in order to get elected.
Then once elected, promptly broke his promises.
'Trust deficit', Tony Abbbot, said was worse than the 'Budget deficit'.
There is now a deep trust deficit between this Abbot government and the people.
If the people can't trust the government to keep their promises, how are they expected to be certain of their future, the economy and their well being and be expected to make bold investment decisions?
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You will get no argument from me that both sides lie. Gotta say I'm sure glad Tony didn't keep some of his promises though. They were stupid to make in the first place as they conflicted with the task at hand.
Just on the so called health and education "cuts", both of these areas continue to have increasing expenditure throughout the forward estimates. The claim of an $80bn cut is disingenuous because: expenditure continues to grow, and the unsustainable growth "promised" by the ALP beyond the forward estimates was never going to materialise. The State govts knew this and are now being called to account.
It's the same ploy labor tried when Abbott was Health Minister and claimed he cut $1bn from the health budget when it in fact continued to grow. It was BS then, it is BS now.
Coalition hypocrisy? Abbott and Hockey in their own words
http://www.crikey.com.au/2014/04/30/coalition-hypocrisy-abbott-and-hockey-in-their-own-words/
source https://www.facebook.com/StopTryingToPullTheWoolOverEyesWeAintAllStupid/photos_stream
http://www.crikey.com.au/2014/04/30/coalition-hypocrisy-abbott-and-hockey-in-their-own-words/
source https://www.facebook.com/StopTryingToPullTheWoolOverEyesWeAintAllStupid/photos_stream
