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Gazza wants to buy ever more expensive houses for doctor’s wives.

By johnboy - 14 February 2007 51

Our Liberal Senator Gary Humphries thinks young people are frittering away their vast earnings because it is “unfashionable” to save money according to the ABC.

Taking his logic a bit further; because of this slavish devotion to fashion they are unable to buy a house, get married and start squirting out children like decent Australians should.

He has a great solution to the problem though! He wants the Government to co-contribute taxpayer dollars to those young people who are wealthy enough to put money into savings accounts rather than spending it all on food, rent, and a skerrig of happiness! (He specifically cites as a *good thing* the superannuation co-contribution scheme whereby the spouses of the wealthy who can make voluntary super contributions get a bite out our hard earned cash)

Helping the wealthy young and the children of the wealthy into the last few rungs on on the property ladder and squeezing out the rest, bloody great policy Gary!

UPDATED: Gary’s media release is now online for those who wish to see his thoughts unadulterated by the peanut gallery.

What’s Your opinion?

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51 Responses to
Gazza wants to buy ever more expensive houses for doctor’s wives.
Ralph 8:41 pm 14 Feb 07

JB is right on this. All the empirical evidence overseas has shown that schemes that top up peoples saving and pension funds have primarily been taken up by spouses of high income earners.

vg 8:32 pm 14 Feb 07

Have read the ABC blurb a number of times and still can’t see how this only assists ‘rich’ kids

emd 7:21 pm 14 Feb 07

If savings incentives like this are implemented, it will not do jot to help minimum wage employees who spend 100% of their salary just surviving.

If the state governments get rid of stamp duty, the price of houses will just rise by the same amount.

I say release a crapload more land onto the market, and let supply/demand take care of it.

Ingeegoodbee 6:13 pm 14 Feb 07

I would have thought that some sort of joint equity arrangement would have been better than doling out our taxes to first home buyers. At least with joint equity the Government would have a share in the investment – that would form an incentive to manage the economy properly and keep interest rates down.

Maelinar 3:53 pm 14 Feb 07

The tax free threshold in Australia is $6,000.

Most Australian’s don’t even notice it happening, because in tax/income terms, it’s peanuts.

VYBerlinaV8 now_with 2:59 pm 14 Feb 07

8 years ago – I wish! I bought the house about 5 years ago (which admittedly was a cheaper time to buy than today). For many people the only option is to save what they can, and take a low (or no) deposit loan.

A friend who just got back from the UK was telling me that over there you can invest 7,000 pounds per year with no tax implications (not sure exactly what this means). Perhaps the Australian govt should consider this type of approach. Basically giving those people who save for a defined minimum period in an approved account some sort of tax benefit (other than super, that is…).

biogaz78 1:10 pm 14 Feb 07

I agree Mr Shab.
Putting aside 20% (if youre lucky) of your after tax salary these days will not get you anywhere near buying a house as quickly as it would have 5 or 6 years ago.

Mr_Shab 12:12 pm 14 Feb 07

Jeeze – houses are really friggin’ expensive. How much more incentive to people need to save money for a deposit? How come the only incentives that are ever suggested seem to involve shovelling out yet more middle-class welfare?

VY – I hear ya, but buying a house 8 years ago, and buying one today are different propositions. Kudos to you for being financially prudent at a young age, but I’d suggest that financial prudence has lesser rewards than back then.

snahon 12:03 pm 14 Feb 07

if he was serious about home affordability, perhaps reviewing stamp duty might be beneficial – oh wait that won’t happen.

CouldExpire 11:28 am 14 Feb 07

How about we take away some of his wage each fortnight to support this new idea of his and see how he likes living and trying to get aheads on an average wage!

CouldExpire 11:26 am 14 Feb 07

What a complete tosser!
Dont those with silver spoons in their mouths have it good enough already?

Freaking ridiculous!!

Thumper 11:16 am 14 Feb 07

I did the same as VY with extra weetbix.

Put the head down, saved like mad, sold my motorcycle (sob) and got a deposit.

Now I just have to pay the sucker off…

Gary has his head in the clouds here. To much LSD in his alter ego Doors days…

bighead 11:15 am 14 Feb 07

JB, I agree with that comment. I save (what I can) But it’s not anything major. I do my best each year to get 1000 into super, so the government gives me a free 1000. It’s probably better to start it now while I can still get it.

While I can see his point to make it an incentive, one must surely agree there is better places our money can go.

johnboy 11:03 am 14 Feb 07

I applaud people who choose to save, but giving a Government handout to people already able to put money aside seems like a poor use of resources IMHO.

VYBerlinaV8_now with 10:25 am 14 Feb 07

How many young people genuinely save hard these day? I remember starting my first professional job at 23 years of age and copping crap from all directions because my wife and I were saving hard for a house deposit, and living fairly simply (I was earning about three quarters of the average Australian full time wage at the time)

“You’re too young to worry about that”
“You’ve got ages”
“You’re only young once”
“You should be focussing more on fun”
“You’ll earn more when you’re older, worry about it then”
etc, etc…

On hindsight, those three lean years set us up. I wouldn’t change a thing, even if I could, because of the benefits we are enjoying now (at age 31).

I would advise anyone who is saving hard to ignore the knockers – your tomorrow will be much more comfortable than theirs.

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