Federal Budget on channel ABC on TV tonight at 7.30pm

I'm not "hating" on anything except the lack of imagination of consecutive governments in Australia to invest in anything remotely innovative or progressive.

 

Here's a spending cut for the offing:
Australia gives $85M PA aid to the Philippines - where workers are trained specifically for 457 visas and Australian jobs

 

Fair enough, it just seemed there was a 'theme' built-up in your posts..

I agree with you about the lack of courage in government planning/spending.. especially since Howard got in for his 2nd term (every armchair expert has 20/20 hind-sight though don't we? ).

 

geez, how could we spend that $85m to make Australians want to do those jobs..

 

It would destroy the business case for a Western Sydney Airport but.

 

Most of it go's to pork barelling, how many country roads are we upgrading that noone drives on?

 

Need you even ask?

Stamp duty has nothing to do with the banks, so the OSR will likely charge on the contract price.

The same thing tends to occur when a valuation comes in low. The bank lends against the lower valuation, the OSR charges on the contract price.

 

Im a fan of a bigger Australia, for the larger tax base. Just doesnt need to all be Sydney and Melbourne.

 

I thought so. Bear with me for a moment .

But if one had two contracts, one for the property and one for the plant and equipment, then would Stamp Duty be charged in the property contract only or would it be charged on both contracts?

 

A larger tax base in the USA for example has not helped an awful lot of their people (admittedly their immigration number is bigger than ours).
The problem is, the job pie is not getting bigger and/or at the same rate as the population in Aus, and the welfare pie is getting bigger.
Our unemployment rate is not really going down; the stats are false; many part-time and casual jobs (which won't pay for any significant standard of living for many) are being quoted in the jobs numbers, while they exclude the ones who are no longer looking. If these people were added back in there would be a worse figure.
The other problem is the majority of immigrants seem to end up in Mel or Syd, with the rest scattered across the rest of the cities...very few are heading out to the regional areas etc.

 

That's a fair point, you'd probably never even bother to show the bank the contract of the chattels. It would be easiest to treat this as a cash settlement. Mind that I've never actually done this at all.

 

The government has repeatedly tried to settle immigrants in regional areas. For example my mother's family immigrated in the 50s. The got off the boat and were sent to Daylesford.

Mum's family actually ended up in Geelong, because Shell (Dutch petroleum) was putting in a new refinery there. My grandfather did quite well providing small goods to the Dutch workers.

To this day both Daylesford and Geelong have large Dutch communities. It would appear that the challenge is to create employment in the regional centres which immigrants can feel comfortable with and relate too.

 

chicken and egg issue really

 

The problem for them now is job opportunities - especially smaller regionals.
Many of the medium sized and smaller Country towns are slowly shrinking.

 

shrinking country towns is a blessing for Australia really. I want more people to move to city so they don't 'Trump'

 

I am interested in pursuing this for two reasons:- one because of the Budget changes (TBH, this won't affect us as we are retired) and two because we are thinking of downsizing next year and having two Contracts of Sale, one for the property and one for some plant/equipment.

The plant/equipment items are surplus to our requirements and include things such as media room leather lounge, wine fridge, bar fridge, BBQ fridge, pantry fridge, two ride-on mowers, garden tools, ... likely total value $50,000).

With the plant/equipment, I see we have three options:

1. Include them in the property Contract of Sale as a list of chattels.
2. Exclude them in the property Contract of Sale and sell them separately and individually after the property Contract of Sale has gone unconditional.
3. Have two Contracts of Sale, one for the property and one for the plant/equipment, with both linked.

The issue I have with Option 1 is the purchaser has to pay S/D on this plant/equipment (total fees probably around $3,000).

The issue I have with Option 2 is that it is a lot more work for me to sell this plant/equipment and possibly for a lot less money, especially if there is a short settlement period.

I like Option 3 as the purchaser saves some money on S/D (say $3,000) and I have a lot less work to get reasonable dollars for the plant/equipment we don't need.

Is there any problem with this approach?

 

[QUOTE="kierank, post: 400806, member: 4233"
Is there any problem with this approach?[/QUOTE]
There have been multiple posts about getting around these proposed new rules. If the govt is serious you won't get around them.

 

In one of the many emails I received today on the Budget , it states:

"From 1 July 2017, travel expenses incurred in inspecting, maintaining or collecting rent on your residential investment properties will no longer be tax deductible. As a residential property investor, you will continue to be able to deduct fees paid to real estate agents or other property managers for these services."​

So, travel for other "residential investment property" activities is still tax deductible. For example, we have to travel (including overnight accommodation) to attend Body Corporate meetings. We wouldn't want our PM to be our representative at such meetings. So, this sort of travel will still be tax deductible?

And, travel for all "commercial investment property" activities remains tax deductible?

Is this correct?

 

I think if soneone decides to not buy because of this eeason,

I had a Russian colleague ask me today if she was to buy an IP in Russia, would she be able to claim travel expenses? I said... yes, but if the budget gets passed, only till the end of June...

Anyway... would travel be deductible for other IP ownership purposes? What examples are there? That's important to know....

 

Our PPOR is on acreage, so it is very, very, ... unlikely that anyone would buy it as an IP.

So, it had nothing to do with the Budget changes.

Maybe I need to start a new thread .