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Surplus could be as much as $18b but belt tightening to go on

Discussion in 'The Economy' started by Simon Hampel, 30th Apr, 2008.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Lateline - 30/04/2008: Surplus could be as much as $18b but belt tightening to go on

    Lateline - 29-Apr-2008
     
    Last edited: 17th Sep, 2016
  2. dostortugas

    dostortugas Active Member

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    Now the Libs want the Govt to start spending. I always grew up thinking that Labor were the big spenders and the Libs were for the small Govt agenda. Just goes to show that the old lines in the sand are gone and us kids (I'm 30) need to re-learn a whole new way of looking at politics.

    Or just ignore it and try to build wealth regardless. I'm making a habit of reading news just for the sake of reading news.
     
  3. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Some might argue that it is better to ignore the new altogether :rolleyes:
     
  4. dostortugas

    dostortugas Active Member

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    I meant I'm making a habit of NOT reading the news for the sake of reading the news. Next is to make a habit of paying attention to what I type!

    In other news... I negotiated a three day work week with my boss/client. It was easier than expected. I think if people took the opportunity to learn some negotiation skills and actually believed that they could do it, we'd have a few more people working half weeks.
     
  5. samaka

    samaka Well-Known Member

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    $18 billion surplus!

    Cool, maybe they can fully fund FTTH broadband or give some research money out to develope a space elevator.

    If we can't do that then maybe a tax cut will do.
     
  6. dostortugas

    dostortugas Active Member

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    Or they could hold onto it for spending in future years when we will all be suffering the effects of the baby boomers ripping all their funds out of super, the stock market, the property market....
     
  7. AsxBroker

    AsxBroker Well-Known Member

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    Hi Samaka,

    We certainly don't need more tax cuts right now, with latest inflation figures at 4.2%, tax cuts would give people an incentive to spend more money which would increase inflation further which would result in the RBA increasing rates even higher.

    Fortunately for us younger ones, I don't think babyboomers are going to be ripping out funds from their superannuation/pension funds, why would you want to take money out of a tax-free environment?

    As long as they continue to receive their monthly/quarterly/half-yearly/annual payments they hopefully should be happy.

    Personally I think now could be a good time to increase Superannuation Guarantee Charge from 9% upwards, Keating wanted it to higher than 9% and ASFA want 15% (Home) so we'll see what Swann decides.

    Cheers,

    Dan
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I think committing up to $10bn to a publically owned FTTN or FTTH network would be a very good way to spend some of that surplus - but governments seem to abhor investing in assets these days.
     
  9. dostortugas

    dostortugas Active Member

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    Hrm.. and what if they want to buy that beautiful house out in Kurrajong or that round the world trip they were thinking about? How do they get the cash for that?

    Don't forget, this is not the generation that are happy with monthly pay outs... they want lump sums for yearly holidays and all the other pleasures.

    Cheers
    DT
     
  10. samaka

    samaka Well-Known Member

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    LOL I already live in Kurrajong (granted still in my parents house). I would much rather the government spend the money on some forward looking research or some massive infrastructure (as I mentioned above).

    However, Labor promised a tax cut so thats what is probably going to happen (albeit a small one). As someone who wants to purchase a PPOR soon, high inflation, and thus high interest rates isn't what I want either.
     
  11. dostortugas

    dostortugas Active Member

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    I mentioned Kurrajong because parents of friends of mine (boomers) moved out there last year. They still work in the city and commute daily! This frightens me. (takes me 20 minutes to get to work in peak time traffic).

    I can see the base of the mountains getting really popular with boomers. They want out of the city but they don't want to be too far away. I haven't been to Kurrajong, but I can imagine there are quality food stores, delis, restaurants etc. Have you noticed an influx of boomers?
     
  12. samaka

    samaka Well-Known Member

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    Yeah that seems to be the type that's out here. Seems like it might become the new Dural (in maybe 10-20 years).

    There's virtually no public transport (train line stops at Richmond) - so most families have 2 cars, all the property is on acres, there's no rental or housing commission and crime is non-existant.

    That said though most people out here like the rural life style so the council is very adverse to subdivisions.

    Anyway... I'm going off topic. :p