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Will Labour Bring in a Wealth Tax ?

Discussion in 'The Economy' started by seaview, 24th Jul, 2007.

  1. seaview

    seaview Well-Known Member

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    :eek:

    I was grumbling the other day about this idea to a wise old investor who, to my horror, said "well, why not - Australia is one of the few countries that does not have a wealth tax".
    Well, that was a bit depressing. Especially since I have very little idea about what a Wealth Tax would/might involve.
    Does anyone have any experience with such a tax overseas.
    Or would anyone like to hazard a guess as to how such an evil tax may play out here.
    In particular, I am curious to know if the asset base upon which this insidious tax is based is "net worth" i.e. after allowing deductions for investment debt. Please tell me it is not based on "gross worth" as I may move to Vanuatu!
    Aloha
    Seaview
     
  2. Tropo

    Tropo Well-Known Member

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    Nothing will surprise me if Labor wins...incl. interest rates well above 10%.
    The question is, what excuse Labor may use to abolish negative gearing...:eek:
    Scenario..
    Well...If I would be in K. Rudd's shoes I would introduce a wealth tax.
    You may pay certain tax if your gross worth is above 500K or 700K etc.
    This may be "progressive" tax. The more you worth the more you pay, up to certain amount which may eat all your neg. gearing claims. :eek:
    Is it possible ???. As always - time will tell.:rolleyes:
    I do not think that Vanuatu is a good place. I would choose Andora or Cayman Islands ect...:D
     
  3. seaview

    seaview Well-Known Member

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    Yes, but do they have good beer?
    Are you sure wealth tax is based on gross worth?
     
  4. Tropo

    Tropo Well-Known Member

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    Yes ....and good looking girls as well :D

    I would think (am not sure) that wealth tax is based on gross worth...:eek:
     
  5. Pablo

    Pablo New Member

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    It was my understanding that when land tax was originally set up it was to tax the wealthy land holders and was considered a form of wealth tax.

    But of course it doesn't mean they won't try to introduce more taxes.
     
  6. Brengun

    Brengun Active Member

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    Indirectly we already have wealth tax. I lost the family allowance benefits when I bought houses. At the time they were valued at over the family benefits threshold.

    The houses were all on loans and my equity was only 20% of the value. I was really struggling to make the repayments and the family benefit was a part of my budgeting it was really needed. Tough! The threshold is judged on the full value of the houses irrespective of loans.

    My accountant told me, had I have had that much in shares, the threshold wouldn't have applied. It only covers realestate. :mad: