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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.

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51 Responses to
Gazza wants to buy ever more expensive houses for doctor’s wives.
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Maelinar 4:41 pm 15 Feb 07

Or even, your tax contribution was used by the Government for them to put you in a government supplied house if you so chose to take up that accommodation option.

Kind of like Matrix, only a little roomier.

Maybe federal govco could set up provisions for ‘house savings accounts’, where the $$ go in pre-tax, like superannuation. Allow only for first home, make people pay the tax if they change their mind, etc….

You’d see some deposits appear then, methinks…

West_Kambah_4eva 3:56 pm 15 Feb 07

link to Age blog

“In 1960 it required 3.5 years income to buy the average Australian house. Currently it takes 8.5 years as indicated by the housing affordability index.”

I think you’ll find rental prices have a fair bit to do with investors. With everyone saying that housing is waaaaaay too expensive, everyone wants to rent. And what do you know, demand goes up and price follows. The solution? Find a way for more people to buy houses.

(Or don’t – as a property investor I am happy to keep taking your money)

bored 3:36 pm 15 Feb 07

Maybe if instead the government readjusted investment incentives so that residential property wasn’t as effective (vs. commercial property, shares etc.) then we wouldn’t have as many asshat investors jacking up the price of housing and rental.

I’m still at a complete loss to see how large scale investment in residential housing is supposed to be good for the economy.

Mr_Shab 2:58 pm 15 Feb 07

The 1st home buyers grant jacked up prices alright – but not to the extent that the 7K could not help to pay for a deposit/stamp duty/legal fees/etc. It pushed prices up, but it put much needed cash in the hands of first-time buyers – like me, who would have had a much harder time buying without that little push along.

The problem is, VY, that house prices are so high that saving a reasonable deposit has become so onerous that people look at the years of penury they’ll have to endure (often after the penury of study/apprenticeship) and say “Nah, stuff it”.

I don’t think it’s prudent – but I can see why they do; especially when the culture of the day is “Have it now! Don’t think! Buy on 87 years interest free!”

VY – No investor in their right mind is going to bid up the price on a property deliberately, but they simply have more finanical grunt than a first home buyer. It has an overall effect on the market – not an immediately obvious one, but a significant one nonetheless.

MOst investors I know don’t try to outbid each other – they would rather pick up the properties that for whatever other reason don’t sell easily, so they can secure the property for the least possible price.

footyboy 2:03 pm 15 Feb 07

50 Years ago a new migrant who secured an ordinary job on ordinary pay could soon hope to buy an ordinary house and then upgrade but those days are long gone.
The deregulated banking industry has flooded Australia with cheap cash, 100 billion plus, a very high portion which property investors have at their disposal (as well as property tax concessions) to outbid the rest of the interested onlookers.
Watch the prices reach astronomical figures when two or more investors fight on.
The home owners grant just made prices increase by more than 7 thousand dollars overnight.

Thumper 1:19 pm 15 Feb 07

I was hoping not to point out the bleeding obvious in this must have now society.

And….DING! Mr Shab hits the nail on the head.

Mr_Shab 1:06 pm 15 Feb 07

In other words, consumer items are cheap (so people can afford and will buy them) and houses are expensive; so no-one could be arsed saving because there are more gratifying things within easy reach.

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