instances of government preferring private

[Pete]

An argument for the government allowing the tax breaks that are so helpful to private property investors is that it is better for the government to do that than provide public housing from their own purse.

Going slightly off topic (that is, not 100% real estate focus), I'm wondering what other example there are of this.

I know there are/were tax breaks for film investing. Which I guess is a very similar situation.

I suspect there are medical related matters. What about services like the RFDS?

And, lots of church based organisations who do much community work.

But, I'm hazy on the matter and would appreciate comments.

regards,

 

[Peter Parker]

An argument for the government allowing the tax breaks that are so helpful to private property investors is that it is better for the government to do that than provide public housing from their own purse.

Going slightly off topic (that is, not 100% real estate focus), I'm wondering what other example there are of this.

Numerous. Eg:

1. 30% Private Health Insurance Rebate (as opposed to simply putting more money into the public system)

2. Govt superannuation co-contribution for low-middle income earners making voluntary payments

3. Grants where charities, etc raise $X for something and local, state or federal governments top it up with dollar for dollar matching funding.

4. Grants for private schools (as opposed to only funding public schools)

5. Tax deductions for work-related self-education.

6. Assistance to industry for research, etc (as opposed to pumping it all into the CSIRO)

7. Money for things like home and community care (it being cheaper to support people in their homes as long as possible than to create a place for them in a government-subsidised aged care hostel)

Some of the above are tax breaks, some are direct subsidies to third parties and others involve outsourcing. By outsourcing, governments can transfer some of its work away from high-paid, high benefit, securely employed public servants to precariously employed low-paid contractors. Risks can also be externalised and commitments lowered.

Rgds, Peter

 

[Pete]

Many thanks, Peter.

Thinking further, your item number 7 relating to aged care is one item most likely to relate to investment by individual private investors.