Budgeting for Capital Gains
“Treasurer Joe Hockey’s budget is a boon for those in pursuit of capital gains” stated Prosper Australia spokesman, Karl Fitzgerald.
“Whilst claiming we all must contribute to the heavy lifting, the budget ignores the easy unearned incomes in real estate and mining.”
“Mr Hockey’s “Prosperity isn’t a matter of luck. Prosperity is not a gift. It needs to be earned” is empty rhetoric”.
“Hidden amongst the deluge of yesterday’s economic news was the finding that Australian residential house (read land) prices increased $484bn over 12 months. This is known as unearned income and is the most damaging entitlement in the nation.”
“The deficit levy will see negative gearing pushed even harder to write off incomes, locking out students and First Home Owners from the Great Australian dream.”
“The government’s identification of entitlements reveals the ideological priorities inherent in the Abbott government. Compare the $484bn in unearned incomes for housing to Hockey’s concern over Family Tax Benefits, which equate to a mere $19bn. Job Seeker Assistance costs just $10bn. ”
“The obvious entitlements to address are capital gains in land, minerals and licensed monopolies. They distort the economy, undermining our competitiveness.”
“The value of our natural resources, our minerals, increased by $56bn in 2012-13. Instead of those making record profits contributing to the budget repair mantra, we are expected to believe high income earning CEO’s will not engage in tax minimisation.”
“This does not make economic sense.”
“Kerry Packer’s statement that ‘only mugs pay tax’ may come back to haunt Hockey, such is the lure of capital gains.”
“Instead of addressing these unearned incomes, Hockey will entice pensioners into playing the capital gains game by increasing their cost of living expenses (doctors, petrol) whilst clipping pensions.”
“One can expect those rational beings on $180,000 incomes to budget for capital gains over the coming years” stated Fitzgerald.