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The new rates regime

By Sebastian Fernandez 20 June 2014 69

household-rates

I don’t want to beat a dead horse, but I have to again raise that I’m extremely worried about the direction this city is heading in re household rates.

I’m a homeowner and I intend to stay in my house for a long time.

I understand that on average, Canberra homeowners move every 7 years, but I intend to be well above that average.

Those of us who do stay in a home for 10, 15 or 20 years will end up paying more than we did under the old system.  We won’t benefit from the saving of the reduction in stamp duty.

I know this hasn’t been in the news cycle of late, but I think it should be.

We’re setting up Canberra to be one of the most expensive places in which to live in the entire country, if it isn’t already. Sure, you won’t have to pay that dastardly stamp duty when you buy a house, but if you’re got to pay 10K in rates every year, what’s the diff.

I still can’t believe that Andrew Barr’s only answer to this when questioned in a some Legislative Assembly committee, his only answer was get a higher paid job, or negotiate for more pay.

What planet are these people from.

I’m not a huge fan of Jeremy Hanson, or for that matter Zed Seselja, but I have to concur with their assertion that our rates will triple in around a decade.  Where do you think rents will go ? In a city which is already way to expensive to rent in, it’ll just get worse.

How sad if we have hundreds of Canberrans who make the call to move out of town because they can’t afford to pay the rates.

I guess the big question is, could the Libs wind this all back should be elected, given that they’re going to be so busy ripping light rail out of the ground ?

 

What’s Your opinion?


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The new rates regime
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rosscoact 5:59 am 12 Feb 15

HiddenDragon said :

davo101 said :

HiddenDragon said :

My understanding is that FHOGs – in some shape or form, and with varying values in real terms – have been around for a long time, so there would surely be plenty of older people who would have received such assistance, not just the current generation of first home buyers.

Wow, I must be getting old when 1 July 2000 was a “generation” ago.

In reviving this thread re the South Australian proposal, I noticed the preceding observation about first home owner grants (and suchlike).

As I suggested in my earlier comment, such assistance has been around for a long time – in fact 1964 (not 2000):

https://books.google.com.au/books?id=gIAm0Ylz9bQC&pg=PA464#v=onepage&q&f=false

Yeah, I got one in 1985 when I bought my first house. As I was newly married and now have a grandchild, that was by definition, two generations ago.

HiddenDragon 8:42 pm 11 Feb 15

davo101 said :

HiddenDragon said :

My understanding is that FHOGs – in some shape or form, and with varying values in real terms – have been around for a long time, so there would surely be plenty of older people who would have received such assistance, not just the current generation of first home buyers.

Wow, I must be getting old when 1 July 2000 was a “generation” ago.

In reviving this thread re the South Australian proposal, I noticed the preceding observation about first home owner grants (and suchlike).

As I suggested in my earlier comment, such assistance has been around for a long time – in fact 1964 (not 2000):

https://books.google.com.au/books?id=gIAm0Ylz9bQC&pg=PA464#v=onepage&q&f=false

HiddenDragon 8:20 pm 11 Feb 15

And another cash-strapped jurisdiction miraculously discovers compelling arguments in favour of land tax for all:

http://yoursay.sa.gov.au/yoursay/tax-review-in-south-australia

If this goes ahead (as if it won’t) Canberra may need to get another airborne whale to lure back all those smart investors and entrepeneurs looking for the very best place in Australia to put their money.

davo101 9:26 am 25 Jun 14

rommeldog56 said :

Or is the intent to unilaterally force the elderly, sick, disabled, old, etc out of their homes ? Sounds like that would be an eventual outcome.

If you are a pensioner or suffering hardship there are a number of options for assistance.

rommeldog56 10:41 pm 24 Jun 14

Dondon said :

rigseismic67 said :

Has anyone factored the rate rise to increased rental costs? I for one will be putting up the rent to cover these costs

I would say good luck with that at the moment. From what I have seen a lot of rentals have lowered their asking prices.

Would be interesting to see the ACT Gov’ts “modelling” on that – if any.

I would think that there is a possibility that investors, if they can not pass it onto renters, might start to divest their properties. Also, the Annual Rates increases everywhere, including the artificially higher ACT ones, would be claimable as a taxation deduction paid for by the Fed’s / rest of Australia’s taxpayers !

Apart from the impact on self funded retirees (and, given some of what I would regard as the callous and uncaring attitudes shown by some to those in this thread) – and I really dunno why anyone would want to be a self funded retiree these days – what about the impact of the Annual Rates rise regime on Pensioners ?

I think (and correct me if Im wrong) that Centrelink beneficiaries/age and disabled pensioners get a 50% discount on their annual Rates in the ACT ? So, if those rates are currently, say $1,500pa, thats $750pa in Annual Rates to the ACT Gov’t.

But what if Annual Rates are $4K pa in a few years, for arguments sake. Can those people afford $2K pa in Annual Rates ? Does that mean that along with ramping up annual Rates each year, that the ACT Gov’t will also have to proportionally increase that discount – maybe to say, 85% ? Or is the intent to unilaterally force the elderly, sick, disabled, old, etc out of their homes ? Sounds like that would be an eventual outcome. I would like to see that “economic” and social modelling too – if any. It must have been considered ?

Dondon 8:37 pm 24 Jun 14

rigseismic67 said :

Has anyone factored the rate rise to increased rental costs? I for one will be putting up the rent to cover these costs

I would say good luck with that at the moment. From what I have seen a lot of rentals have lowered their asking prices.

banco 6:47 pm 24 Jun 14

rigseismic67 said :

Has anyone factored the rate rise to increased rental costs? I for one will be putting up the rent to cover these costs

Well you can try but just as likely the price of your investment property will fall slightly to reflect that the carrying costs of the asset have gone up.

davo101 5:58 pm 24 Jun 14

HiddenDragon said :

My understanding is that FHOGs – in some shape or form, and with varying values in real terms – have been around for a long time, so there would surely be plenty of older people who would have received such assistance, not just the current generation of first home buyers.

Wow, I must be getting old when 1 July 2000 was a “generation” ago.

rigseismic67 5:54 pm 24 Jun 14

Has anyone factored the rate rise to increased rental costs? I for one will be putting up the rent to cover these costs

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