Federal Budget on channel ABC on TV tonight at 7.30pm

For those interested in what the government is about to tweak, the federal budget is on TV tonight. It shall be interesting to see whether negative gearing is mentioned.

 

Straight after the budget on ABC 20 at 9 pm there is a documentary that some here might be interested in. I do not know anything about it other than what I see on my TV's guide, it is "Foreign Correspondent: The Home Show" it seems to be about what other countries are doing in regard to housing affordability.

 

I was busy, so what is the news for us as investors ?

 

Housing affordability measures

• Tax cut for first home buyers' deposit savings, by allowing them to salary sacrifice into their superannuation account over and above their compulsory superannuation contribution from July 1. Contributions will be limited to $30,000 per person in total and $15,000 per year.
  
  
• Allow downsizers over the age of 65 to make a non-concessional contribution of up to $300,000 into their superannuation fund from the proceeds of the sale of their principal home.
  
  
• States to be held more accountable on meeting housing supply targets.
  
  
• $1 billion National Housing Infrastructure Facility to be established, based on a UK model, to assist development.
• Release Commonwealth land for development, including a new 6000-home suburb in Melbourne at Maribyrnong.
• More affordable rental housing via long-term, low-cost finance.
• $375 million for a permanent extension of homelessness funding to the States
• An annual foreign investment levy of at least $5000 on future foreign investors who fail to either occupy or lease their property for at least six months each year.
• Prevent developers from selling more than 50 per cent of new developments to foreign investors.

 

The bank levy, if it passes, might see further increases on interest rates charged to home loans.

Federal budget 2017: Banks face new tax, bigger penalties for misconduct

 

This one caught my attention- depreciation and investment related travel being targeted.

From news.com.au:
Negative gearing remains, but rules are being tightened around what can be claimed, specifically travel expenses and depreciation deductions.

Under new rules coming into effect from July 1, depreciation deductions for plant and equipment items such as washing machines and ceiling fans will only be allowed if the investor actually bought them.

The “integrity measure”, which is intended to address concerns that such items are being claimed as tax write-offs by successive investors in excess of their actual value, is tipped to claw back $260 million over the next four years. The changes will apply to any items purchased after budget night, but existing investments will be grandfathered.

Meanwhile, investors will no longer be able to claim tax deductions for travel expenses “related to inspecting, maintaining or collecting rent for a residential rental property” from July 1.

Looks like a hit to business and act of war for quantity surveyors.

 

I'd say thats a definite, along with rises in account keeping and ATM fees

 

So this would affect those owners who are based overseas but who fly to oz occasionally to inspect their investments?

 

I'm an die hard ABC fan, but this Michael Janda wally is pushing the limit.

Budget lacks the silver bullet needed to slay Australia's housing vampire

The deluge of insults to investors at the end of this "article" just shows a level of ignorant bias the likes I've never seen. Best to ignore the vanker by not commenting, but feel the need to vent.

Edit. Seems I vent too much as a common adjective became an asterisk like ellipsis.

 

Yeah I saw the vampire reference too. *******.

 

I wouldnt pay too much attention to the budget. This Government won't get a chance to implement any of it.

Where is the benefit? Taxed on the way in, taxed on earnings, taxed on the way out. It's going to cause an administrative nightmare for almost no benefit to an individual and your money is locked up.
All on a maximum balance of $30,000 per person.
The benefit will be in the range of $'100's of dollars if lucky.

Wages growth, unemployment, GDP forecasts all looked like bs assumptions.

 

\_(ツ)_/¯
Optics matter. As long as it looks like its helping, thats good enough for some folks.

 

Its a budget. Its a political show. Now the horse trading will begin. The only thing they will all agree on is the bank levy

 

OK...nutin...I can see that is substantial....yawnnn....stretch.....back to property investing...

 

I can see rents being jacked up to cover all this.

And outside the Druitt Centrelink office a motza will be made out of selling drug free wee lol.

A table will be set up on the street....one half of the table sells apple juice and the other half......just don't get the sides mixed up!

 

Exactly. There is no real incentive to put money into it, and for a limit of 30k in TOTAL, it's just a fluff policy that won't help at all.

 

Am I missing something here? Isn't their home tax free? Why would they want to put tax free gains into their super?

 

Used to work on the software side of superannuation admin. Budget night would always create a flurry of new work. Incredible amounts of additional work for so little actual usefulness.

 

Yep wouldn't it have been easier to just give them the $7k first home owners grant? Lol

 

CGT