Property owners in Australia already face enough taxation hurdles, a property lobby group says... Positive outlook for Australian housing market...
Government urged not to increase tax burden faced by property owners
Property owners in Australia already face enough taxation hurdles and should not be leant upon for additional funding for infrastructure projects according to one property lobby group.
In a speech to the Sydney Business Chamber this week, the Federal Minister for the Environment Greg Hunt said that current infrastructure expenditure levels have stretched all levels of governments in Australia to their limits.
“It is clear that rapid growth in major capital cities can’t be accommodated with existing public funding models. All levels of Government in Australia are facing budget constraints,” Hunt said. “While there are a number of major infrastructure projects underway or in planning, we are unlikely to be able to sustain this rate of investment in the long-term,” he said.
This strain means there is need for new methods to fund infrastructure, with Hunt suggesting this could be done by implementing a value capture tax.
“One of the fairest ways to fund new infrastructure investment is for the beneficiaries of that infrastructure to contribute to the cost,” he said. “Value capture is increasingly used internationally to ensure that projects go ahead, residents receive the benefits, but some of the cost is offset though the uplift in value to beneficiaries.”
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Positive outlook for Australian housing market
Australians have started 2016 with a more positive outlook on the nation’s housing market according to research released yesterday.
Results from the January Westpac-Melbourne Institute Survey of Consumer Sentiment have revealed more people think now is a better time to buy a house than any time since midway through 2015.
The Time to buy a dwelling index in the survey rose by 13.9% over January to 113, up from the 99.2 recorded in December.
January’s figure is highest score the index has recorded since May 2015 and is just 1.4% lower than it was in January last year.
Westpac chief economist Bill Evans said the January figures should be treated with some caution, but the size of the month-on-month increase does point to the likelihood of a more positive outlook on the housing market.
“The sharp increase in the Index in January will reflect some seasonality but the move is so large that we can only conclude that this print may be signalling some improving optimism in the housing market,” Evans said.
“Most of the improvement in the national Index was driven by a sharp improvement in New South Wales which has regularly posted the weakest readings amongst the states in recent times. For this reason it is best to be cautious but nevertheless encouraged by this result,” he said.
In depth: Have your say on the banks
Property owners in Australia already face enough taxation hurdles and should not be leant upon for additional funding for infrastructure projects according to one property lobby group.
In a speech to the Sydney Business Chamber this week, the Federal Minister for the Environment Greg Hunt said that current infrastructure expenditure levels have stretched all levels of governments in Australia to their limits.
“It is clear that rapid growth in major capital cities can’t be accommodated with existing public funding models. All levels of Government in Australia are facing budget constraints,” Hunt said. “While there are a number of major infrastructure projects underway or in planning, we are unlikely to be able to sustain this rate of investment in the long-term,” he said.
This strain means there is need for new methods to fund infrastructure, with Hunt suggesting this could be done by implementing a value capture tax.
“One of the fairest ways to fund new infrastructure investment is for the beneficiaries of that infrastructure to contribute to the cost,” he said. “Value capture is increasingly used internationally to ensure that projects go ahead, residents receive the benefits, but some of the cost is offset though the uplift in value to beneficiaries.”
In depth: Don't underestimate the reach of social media
Positive outlook for Australian housing market
Australians have started 2016 with a more positive outlook on the nation’s housing market according to research released yesterday.
Results from the January Westpac-Melbourne Institute Survey of Consumer Sentiment have revealed more people think now is a better time to buy a house than any time since midway through 2015.
The Time to buy a dwelling index in the survey rose by 13.9% over January to 113, up from the 99.2 recorded in December.
January’s figure is highest score the index has recorded since May 2015 and is just 1.4% lower than it was in January last year.
Westpac chief economist Bill Evans said the January figures should be treated with some caution, but the size of the month-on-month increase does point to the likelihood of a more positive outlook on the housing market.
“The sharp increase in the Index in January will reflect some seasonality but the move is so large that we can only conclude that this print may be signalling some improving optimism in the housing market,” Evans said.
“Most of the improvement in the national Index was driven by a sharp improvement in New South Wales which has regularly posted the weakest readings amongst the states in recent times. For this reason it is best to be cautious but nevertheless encouraged by this result,” he said.
In depth: Have your say on the banks
