It was good to see the ALP making an effort this week to extract data from a reluctant NSW Government about the level of foreign citizen buying of housing and land in NSW since 1 July 2016.
Note: For the period (decades) prior to 1 July 2016, there is no data recording foreign ownership of NSW land because our dimwitted politicians did not direct the OSR to require identification from buyers and sellers. Yep, no records were kept.
However, it quickly became clear that the ALP needs to keep on digging and pushing Premier Gladys “Secret Squirrel” Berejiklian and Treasurer Domininc “I knowz nothing” Perrottet to cough up the data so the public know what is going on and there can be an informed debate.
Accordingly to newspaper reports the Office of State Revenue provided data, pursuant to the Freedom of Information request, for the period 1 July 2016 through to 30 September 2016 only. Continue reading
It always sounds odd to argue that we need a lower $AUD but the ‘value’ of the $AUD is very important in determining whether or not Australia becomes a Banana Republic.
People buying imports and planning a holiday overseas love a high Aussie dollar as they have greater spending power.
However, people who have lost their jobs or businesses as a high Aussie dollar made imports cheaper and made it harder to compete in foreign markets are not so keen on a “mighty” high Aussie dollar.
So how do we resolve the happiness of consumers v the happiness of Australian workers and business, bearing in mind that at different times of the week most people are both consumers and workers/business owners? Continue reading
NEWSFLASH – Since publishing this post on Saturday there has been a flurry of activity by the State Government, as some foreign buyer data for the period July through September 2016 was released following a FOI request by the Daily Telegraph. The Premier and the Treasurer promise to do “something” to slow the acquisition of local housing by foreign buyers. But when and what is the question.
The real story is that the government is sitting on the foreign buyer data for the period right through to the end of February 2017 and should release it immediately. The period July – September 2016 was likely to have been slow for foreign buying activity as the introduction of the new charges on 1 July 2016 caused buyers to bring their transactions forward to before 1 July 2016. Release the data Premier Gladys Berejiklian and Treasurer Dominic Perrottet!
A few weeks ago the Glass Pyramid noted that much of the speculation about “who is buying Australian houses and driving up prices” could be resolved very easily if the Australian Tax Office released some of the detailed information it is now receiving from the state land title offices and offices of state revenue. Continue reading
The papers are full of stories about Australian companies being gouged and charged top dollar for LNG supplies at the same time as a bunch of international companies extract our gas reserves and ship them offshore to sell in foreign markets for peanuts.
There are even loony ideas circulating whereby we build a new terminal to re-import the gas those companies are selling offshore for nickles and dimes.
Why import what should never have been exported in the first place?
Worst of all some industry clowns are trying to use this massive policy failure and incompetence induced gas shortage as a reason for demanding that every farm gate be forced open and every paddock be made available to the agricultural vandalism of fracking.
The solution is simple and no different to the one required for iron ore. Continue reading
Sorry there was a typo in that headline.
“Bank CEOs deny Australian Housing is in a bubble” is what it should have said but in terms of denying the obvious it is right up there with the mass denial by tobacco CEOs that nicotine is addictive.
The Sydney Morning Herald covered the denials this week.
So what delicately expressed sentiments did our very dear bankers provide to help Mr Morrison sleep soundly in his “bubble boy” bubble?
Westpac Continue reading
An excellent interview from Renegade Inc.
Professor Richard Werner and David Buik talk with the host Ross Ashcroft about what is wrong with modern banking – especially in the UK.
Plenty of lessons for Australia, where our current woeful government reckons a massive house price bubble constructed with record levels of household debt and taxpayer guaranteed foreign debt is evidence of sound economic management.
And the best Mr Morrison and John Alexander can do, they need to look like they are doing something while doing nothing at all, is offer innovative ways for young families and first home buyers to take on even more massive amounts of debt to keep the farce from imploding. Continue reading
With the ongoing and loud debate about the merits of negative gearing and property investment, Australian property investors may not be paying enough attention to the mountains of property data the ATO recently gained access to and what the ATO might do with it in the very near future – say this financial year ending 30 June 2017.
Everyone is long used to the ATO pre-completing tax returns with interest income earned on our bank accounts. We all know that our banks are forwarding information about our interest income to the ATO so the ATO can ‘check’ if we forgot to declare some income.
The ATO are very good at sniffing out small amounts of Term Deposit income that a taxpayer might forget to include as they tap away late at night on 31 October each year and even better at sending “Dear Taxpayer” letters a few months later.
Douglas Driscoll, the CEO of Starr Partners – real estate agents – reckons that foreign buying of Australian real estate is out of control.
It is a good indication just how out of control the Sydney housing market has become when a real estate agent is concerned about excess speculative investment. While stagnant and slowing volumes in a market where many buyers are priced out is the likely explanation, he still deserves a small gold star for speaking up.
What is unclear is where he gets the number of 200,000 empty houses? Continue reading