Labor’s budget cruelty to young Australians. By Robert Gottliebsen in The Australian.
Many see the younger generation as spenders who don’t save. While that’s partly true, a large number have been buying ETF securities with the aim of making money on the share market to enable them to gain a deposit for a dwelling. It was a high-risk strategy, but Chalmers destroyed that strategy — and the hope of a house — with his capital gains tax on their profits.
Younger people now find career pathways hard to achieve. Increasingly, they are looking at start-ups and using their talents in technology, marketing and other areas to develop a business. … Chalmers plans to hit them with high capital gains taxes that clock in when the business is worth nothing. Those who have succeeded tell me they would now never start a start-up in Australia and are advising others to base themselves in either New Zealand (where there is no capital gains tax) or Singapore. A huge loss for Australian innovation. …
Compulsory sharing, comrades
Young tradies are furious. They don’t buy ETFs but rather seek to buy rundown houses which they repair and rent out. It has been a very profitable exercise for tradies over many generations and now our young tradies are being told they can no longer use negative gearing so it is not economic. I won’t repeat the expletive words they are saying about Chalmers and Albanese. …
Businesses around the country are now looking at converting their trust operations into company structures, creating huge stamp duty obligations. …
The huge hidden obligation:
The total Snowy 2.0-related project is going to cost around the $1 trillion mark, including secret guaranteed investment returns, many of which are nothing short of rorts. (And now that the unions have discovered it could be a honey pot, the $1 trillion current estimate of costs could explode.) …
The $1 trillion that will have to be paid for by the next generation of power users — our young people.
It will slash their job opportunities and keep their cost of living high. The cost was not disclosed in the budget. … This future liability is so enormous that its deliberate concealment made a complete nonsense of the budget.
Australia now has easily the highest capital gains tax of any western country.
If you want more of something you subsidize it; if you want less you tax it (e.g. cigarettes). Now the Labor Government is taxing entrepreneurship more heavily.