Budget Smudge-It: Criticism of Swan
The Swan Federal budget was limited in its’ vision, giving with one hand in the old welfare game but taking away with the other by providing further subsidy to propertied interests. Whilst it is widely reported that the wealthy were hit by means testing, fellow Georgists were busy joining the dots between the $40billion worth of major projects and its’ effect on land values.
It must be remembered that your tax dollars will finance infrastructure that increases land values, making it harder for renters to get into the property market. The government is investing your money but giving the return on the investment (the higher land values) to people with the most land. Its about time the government start collecting the return on its investment by collecting the site rental on land. Then it wouldn’t need to tax our income as much.
The largest migrant intake in 60 years added to the smiles of those in the know. More people means more demand. With the government only promising 50,000 new homes, the excess demand will curtail the effects of the global credit crunch.
The housing budget included $2billion. $1.2billion was allocated to to the First Home Owners Saving Plan by taxing savings at a lower rate and government contributions to savings. This all adds to buying capacity. Just like the FHOG, land and housing prices will only go up. One wonders how much more renters can take.
Of interest to all will be the National Housing Supply Council and how it keeps an eye on land bankers. A Site Rental on land will ensure speculative sites are used productively in order to make them economically viable.