Budget 2017-18: should we speculate to accumulate?

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The concept of good debt and bad debt is not new but should the Treasurer Scott Morrison’s sudden passionate differentiation between the two have us worried?

The Coalition has never been big on debt of any kind, preaching for years that a deficit is bad for the Budget and, in turn, bad for the economy. However, less than two weeks out from the Federal Budget 2017-18 Scott Morrison decided that good debt might not actually be so bad after all.

So what’s the difference between good debt and bad debt. Simply put, good debt is money borrowed to pay for projects such as national infrastructure programs and investment in industries that create jobs and keep the economy turning. Bad debt, on the other, hand tends to deliver no economic benefit.

It’s this good debt definition that Scott Morrison is relying on to get him out of what is likely to be a pretty bleak Budget, unless you’re a first home buyer that is. Everything is pointing to the economy slowing down. Commodity prices are falling, large building projects are coming to an end, wage growth is going backwards and the concern over rising household debt and an unsustainable housing market will undoubtedly lead to a tightening of household spending. Therefore, the Government has to look to some kind of ‘miracle’ to keep the economic wheels turning – hence the willingness to do a complete flip on the concept of good debt.

Good debt will be used to fund large-scale infrastructure projects that will, if chosen correctly, deliver a much-needed economic boost. However, there is a knack to choosing the correct projects – pink batts, school halls and the NBN projects were all worthy projects but poorly implemented and mismanaged.

Read more at ABC.net.au

Opinion: Just do something

One week out from the 2017-18 Federal Budget it’s clear that the Treasurer isn’t any closer to delivering a balance sheet for 2016-17 that will make anyone smile, in fact it’s likely to be worse than predicted just five months ago.

According to Deloitte Access Economics twice-yearly Budget Monitor, released today, stagnant wage and job growth has cut the revenue from personal income tax to the tune of $1.7 billion in 2016-17. This means that the budget deficit will be almost $2 billion worse than predicted at the end of last year.

However, a surge in commodity prices and low interest rates will deliver a small boost for 2017-18 to the tune of reducing the predicted deficit by $1.2 billion for the next financial year.

While everyone is expecting a financial boost from the mooted assistance for first homebuyers, the reality is if people can’t afford to pay their mortgage over the next 25 or 30 years, there’s not much point in buying a house.

Scott Morrison’s predecessor Joe Hockey, was much maligned when he made the statement that the first step to affording a home was to get a well-paying job. His delivery was definitely flawed, but the principal isn’t wrong, you just have to give people the opportunity by providing such jobs.

Spending big to stimulate growth isn’t a ground-breaking move, many countries do it. With interest rates at record lows, economists have been urging the Government to do just this for many years. It remains to be seen whether Scott Morrison will have the intestinal fortitude to announce a major infrastructure spending program while the country’s budget deficit continues to grow. But the need for action is clear and sometimes it’s better to be damned for doing something than ridiculed for not.

What do you think? Do you agree that there is both good debt and bad debt? Is a targeted program of infrastructure spending the best way to help the Budget and the economy? Or should we be reining in all spending?

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Written by Debbie McTaggart

289 Comments

Total Comments: 289
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    Cutting taxes for the wealthy doesn’t feed ”good debt”. If, instead of cutting company taxes and preserving benefits for the well off, the government cut taxes for low income earners and increased welfare dramatically, the resulting spending boost might result in higher profits generating higher tax revenue and reduced unemployment, reducing the budget deficit.

    I don’t trust the LNP to make wise spending decisions. Their focus is always self-interest and feeding the well off. Neither do I believe their nonsense about ”good debt”. Sure, there is such a thing, but Morrison is just waffling to save his hide because HE FAILED.

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      Rainey low income people pay little tax or none. A family earning $60,000 gets more in welfare than they pay in tax. Only 40% of Australians pay any tax at all.

      Cutting company tax will help small business especially those effected by flooding. They are doing it tough.

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      40% of all working households receive more in government benefits than they pay in taxes.
      84% of all personal income tax is collected from 20% of tax payers.

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      Those who benefit more, pay more – still doesn’t leave them as poor as that 40%.

      Very socialist is your LNP… much as they try to disguise it.

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      The well off do not pay nearly enough to cover the cost of supplying the benefits they enjoy, and working people on average incomes and below pay far too much. As for company tax cuts – utter rubbish. Company profits have been skyrocketing while wages stay stagnant. The cuts will further enrich directors and senior executives, whose wages are downright obscene. They were neither needed nor justified. Those affected by flooding will claim huge insurance payouts and are also receiving special government aid packages (I know because I live in an area that was badly affected.)

      The higher income earners SHOULD pay high taxes because they are profiting from lower income earners working for far less than the value they produce so the fat cats can get wealthy. Progressive taxes were intended to balance this inequity, but the LNP and their wealthy supporters don’t subscribe to social justice programs. They have neither morals nor integrity – just GREED.

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      Rubbish Rainey the well off can only eat as much as everyone else, they can only sleep in one bed, wear one set of clothes so they do not consume any more than the ordinary person. In fact they actually provide a lot more for the ordinary people that they take.

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      The Accord had a social wage attached to it.Workers have kept their end of that bargain as low wages prove. It is the social wage part that those who took the profits are now refusing to honour. The Accord has made many very wealthy indeed at the expense of ordinary workers.

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      Come on OG. Wealthy people consume a lot more. More expensive food, entertainment, clothing, personal grooming, education etc.However, poor people spend a much larger percentage of their income, just to live. You seem to forget that everyone pays GST

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      Sundays I wouldn’t spend half of what most people spend on food, clothing, entertainment, personal grooming etc so that statement is false. Just because you earn income you do not have to spend it.

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      Well – there ya go, OG – your OAP contributes 100% of income back into the economy and you hoard it thus creating a Black Hole in the Budget… no wonder we need budget repair when those with too much don’t spend and keep the economy moving.

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      Well said, Trebor. Clearly, OG is the PROBLEM here, and his greedy, self-serving ‘solution’ would devastate the economy as well as creating a very unhealthy society in which crime would be the only way for many to survive.

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      I also spend very little but I supply free housing, food etc to my housekeeper and handyman. From what OG says he has a partner and accomodates young people who need help in getting their life back in order. I’d say we both do moremore than most people for society. If that’s greedy then the other 99% of the population must be extremely greedy.

      Don’t forget all the excess food I grow that gets donated to the poor?

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      OG you are quite correct. Too many do just pay bills and spend everything else with no thought for future needs or consequences. Education programs to teach skills of budgeting, saving and investing are needed in my opinion.

      The stats show over 60% have this spending/ living on debt habit and it created huge stress in lives.

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      I am also a very practical person and have had to be throughout my life and I never buy for the sake of it — I was taught to save and never spend if I never had the money to pay for something — never ever get time payment — I did of course for my home but worked hard and paid that off.

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      Ah, yes, Lazlo – the old ‘label the rest moral degenerates’ line, eh? Missed by THAT much!

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      Well Rae if those people you say are spending with no thought to the future someone must be benefiting, shopkeepers, jobs created and a whole range of other businesses that keep our economy going.

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      Precisely the point, Misty – an economy is a fluid thing, not a set of fixed constellations – much the same as Morrison’s puerile attempt to label Social Security as some kind of ‘bad’ debt amongst countless other modes of spending when there are, as pointed out, many more genuine BAD debts out there from the current mode of government spending.

      Not that I expect much better from Labor – just a different ideological focus… with similar wastage to their selected groups.

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    This is truly pathetic of the Liberal party and shows their hypocrisy in a clear light. This is an transparent attempt to ward of criticism of their incompetence in handing government of a nation. When they were in opposition during the Global Financial Crisis when did they ever, ever concede this definition of debt “So what’s the difference between good debt and bad debt. Simply put, good debt is money borrowed to pay for projects such as national infrastructure programs and investment in industries that create jobs and keep the economy turning. Bad debt, on the other, hand tends to deliver no economic benefit. When the whole world was congratulating the LABOUR PARTY and JULIA GILLARD on their policies and economic ratings, the sleazy backstabbing Liberals were conning the nation about the evils of national debt, and the nation fell for it. Now these morons have more than tripled the debt, with little or nothing to show for it, they tell us it’s ‘good debt’. What a load of charlatans.

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      Labor party just panicked during the GFC and we are seeing the results of that today.

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      Absolute nonsense OG. The LNP sold everything that produced revenue and created huge bills through tax concessions, childcare rebates, free super pensions etc, on and on.Wasteful contracts and mismanagement. This is a LNP waste of money nothing to do with Labor.

      Howard’s idea to double the population in such a short time was crazy. It was always going to bankrupt the country.

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      Geezer absolute RUBBISH — if the Rudd had not done what he did we would have been up that well-known creek without a paddle — this mob have NFI what the hell they are doing and need to get out, all they are interested in is helping out those that do not need help and lying about what jobs it will create — when the whole time they are making jobs obsolete.
      They can spend BILLIONS on bloody defence that is well outdated but nothing to help those that built the bloody country.
      Morrison is a dangerous, NASTY religious NUT!

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      Labor inherited massive obligations from a profligate LNP government that wasted the profits of the boom. Given the GFC, Labor managed the economy very well – surprisingly! The LNP did a very bad job under Howard and Costello and is doing a worse job now, and this ”good debt” crap is merely to try to cover up their massive failure.

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      ….good comment PlanB – ScoMo is a ‘mealy mouth’ nut-job! Ugly to boot ……………… lol 🙂

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      While i agree with just about all you say Rae, who gets free super pensions? That’s a lie about public servants usually spread by the far right. I paid for my super and how I can use it is highly restricted. I have no lump sum and a small pension. Thats it. I can’t borrow or use it in any other way, or leave it to my descendents.

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      You are correct Renny I meant the tax free pensions in pension mode that all get, even multi millionaires. I do understand that public servants paid for their own super by paying large amounts of after tax money into compulsory funds and in most cases not even getting the 9% surcharge. It was an absolute disgrace in my opinion that the non concessional amounts are deemed to be so much lower than true amounts.

      And yes to get that pension your lump sum was handed over with no opportunity to change the decision.

      The nurses, teachers, firefighters etc that served their communities diligently should never have been treated so shabbily by the LNP.

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      Where has the “World’s Greatest Treasurer” gone? Perhaps he should be found and asked how to fix the problem he and his fellow Labor party members contributed to. Payments to dead people and people living overseas.

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      The LNP won an election by slamming ALP spending by spreading the lie that there was no such thing as good debt. It has now changed its mind in order to justify its inability to substantiate its own lie.

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      Yes ex PS The revenue base has been pretty much destroyed. All those dividend producing public assets sold, all the poorly constructed contracts, the decimation of the public service, the out of control insurance industry and millions of new immigrants to make the GDP look good but obviously no money to provide for the infrastructure needed.

      Not that Australia is the only country in strife. The Western Nations have been damaged beyond repair by Neo liberal ideology and I doubt there will be an easy fix.

      All we can do is save for those rising costs of living, cut discretionary spending and help the young wherever we can.

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    Morrison is a moron,hasn’t a clue ..just a pole Turtle…

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      “You know he didn’t get there by himself, he doesn’t belong there, he doesn’t know what to do while he’s up there, and you just want to help the poor stupid guy get down.”

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      Well you lot voted him in.

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      Scotty is part of that religious mob that thinks accumulation of personal wealth is Godly and just, as a means unto itself. He’s a trickle down Treasurer, which means of course, he’s just a greedy b…..d. He’ll pander to his Hillsong mob until the cash cow comes home to be milked. It’s part of his DNA and nothing will change that.

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      His electorate voted him in OG – and his party made him Treasurer – god knows why since he hasn’t two brain cells to rub together in a fit… I lie – he has two brain cells – they warily circle one another like two boxers trying to avoid contact in his skull.

      All he’s good for is to be a mouthpiece for this dopey ideology driven government and like the good concentration camp guard he is, he doesn’t question orders…..

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      Geezer I never voted for the Libs or the Labour I voted for Hansen but she has also proved to be a dead loss so far

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      I certainly didn’t vote for this lying mob of fraudsters whose goal is social engineering to crush the working class and ensure the wealthy hoard all the gold.

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      I didn’t vote for them either as it’s simply not worth voting as the result is already known.

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      The Minister roles are a handout from the party – not voted on by the people – and they are handouts in return for political loyalty and the absolute acceptance of the party line and the ability to absorb every bit of spin and regurgitate it on cue (that’s where Tony failed – he couldn’t regurgitate it properly) without genuine thought or consideration for the often dire impacts on countless people outside the power ring … nothing to do with competence or native ability.

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    Good debt is simply borrowing to invest with a long term view of making a profit. This is what governments should be doing in health and education. This government hasn’t a long term view and doesn’t value education as a means of advancing our productivity and fiscal growth. The ALP has been lambasted continuously by the LNP for increasing debt, but the LNP has continued to increase bad debt while unwilling to invest in “good” debt such as in education and health, both of which will improve our fiscal position into the future. Instead they continue to pander to the wealthy which does nothing to improve Australia’s fiscal position, but places even more wealth into the hands of the few.

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    The biggest examples of bad debt are welfare including OAP, Gonski and NDS. Health is more about patching up people after the horse has bolted and education is about fleecing those who want to achieve and pandering those who never will.

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      Rubbish – OAP and other social security – in writing from The Guv itself – is funded by a portion of income tax and levies on other strands of taxation – and as a core issue for government has nothing to do with borrowing in any way shape or form.

      All government borrowing into consolidated revenue can be labeled ‘good’ or ‘bad’, depending on ideology – but the reality is that this government and those of the States are going to have to learn to live within their means while continuing to uphold their contract with the people – or get out.

      They all need to fully review their spending, and not on core issues such as Social Security.

      Borrowing to fill the Black Hole created by stealing $130Bn for their personal ‘future fund’, and borrowing $50Bn to pay someone else to build ships, and borrowing $50Bn to fund tax cuts to greedy business – are all BAD borrowings, and they are not alone.

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      Get off your high horse on welfare OG, I had enough of that on the previous topic.

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      Well let’s face it most people who gets sick do so from bad life choices. We educate those who will never succeed but charge those who will like a wounded bulls. We are doing nothing but prolonging the life of those who neglect it and wasting money on educating those who will amount to nothing. Completely the wrong way around.

      Why prolong the life of those whose quality of life is bad? Makes no sense to me at all. Nursing homes do just that. Palliative care does just that. These are really nothing but cruelty. We don’t let animals suffer like this but do so with humans.

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      So next time I walk into a room filled with cancer patients, and make them laugh in true Patch Adams style, I will assume they are all there because of bad choices in life or laziness in thinking etc or pure moral degeneracy?

      Should we send all sick people to the gas ovens rather than treat them now, OG? That’s what you’re saying here.

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      If you smoke, drink or have bad diet etc and get cancer it is a life choice. By the time you get to that room filled with cancer patients yourself then your life has already changed for the worst even if they manage to delay the cancer killing you. Cancer is never cured it’s just that something else gets you before it does.

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      Well, OG declared my disabled grandson should not have been allowed to live, so I guess that’s exactly what he’s saying, Trebor. Not a compassionate bone in his body, and not an ounce of human decency either.

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      OG I am ashamed of you, how dare you make that comment above, I was a nursing sister for many years and I can tell you now many cancer and accident patients were in the wards through no fault of their own, nothing to do with lifestyle etc. My brother has MS, NOTHING TO DO WITH HIS LIFESTYLE EITHER, what are you advocating OG euthanasia for all these people?.

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      I too have a disabled son but he became disabled after birth through a bad decision I made in allowing him to have one of those injections of toxic substances. If he had been disabled at birth he would not have lived. That is what human decency is all about.

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      There would be over 70% of people in hospitals due to bad life choices. The jury is still out on MS.

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      Old Geezer you need to watch you bloody mouth — my Husband was a clean living man who died with a very rare bone cancer at the age of 50 and 3 weeks — so get off your bloody high horse and wake up to yourself. There are people that get ill and die even as little Children, would you call them deserving of death?
      You are a nasty bit of work!

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      What toxic substance are you talking about OG?, I worked in Obstetrics for 4 years and those so called toxic substances saved many newborns lives, I am sorry your son ended up disabled, maybe he was allergic to whatever he was given, did you get a definite reason for his disability from the Dr’?,s was he tested at all or did you come to this conclusion on your own?.

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      PlanB I have had cancer twice myself and live a healthy life. All I am saying is that if people made better lifestyle choices then our health budget would be a lot less. The hospitals are full of people making bad lifestyle choices. Also watch what happens when driverless cars take over and the road accident rate falls to almost zero. Yes it is a bad lifestyle choice to drive a car or ride in one today.

      I only say it like it is and that is how it really is.

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      So OG was your sickness caused by YOUR life style?

      Sure there are some that choose a lifestyle but there are others that choose a good and healthy one and sometimes it is the “healthy” life style people that get ill and DIE — sometimes we do not have a choice I do not think your attitude is at all caring in anyway.

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      Og what do you mean by saying if your son was born disabled he would not have lived? Would you have done the unthinkable?, I have seen many children born disabled who have lead healthy happy lives.

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      Yes my cancers were caused by my exposure to toxins as a child.

      You don’t allow a disabled animal to live so why a child? Anyone allowing such a child to live is doing the wrong thing by that child.

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      OG, don’t I remember you saying a few weeks ago that you have had cancer?

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      Yes I have it twice both being completely different and unrelated. Even though they were 50 years apart the treatment wasn’t much difference. Little progress have been made thanks to big pharma.

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      Spoken like a true ignoramus, Old Geezer. I’ll bet you don’t value an education, but think degrees are just a way of keeping the stupid away from screwing up the country.

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      Way too many people with degrees today so they are virtually worthless. Many employers now using other criteria to select their employees as degrees are just too easy to get and have little indication of what that person can do.

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      Og that amounts to murder, just because a child is born disabled does not mean they don’t have a right to life.

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      Just shows how a civilised and presumably intelligent country can descend so quickly into genocide.

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      Oh, well, OG – for your third bout of cancer you go to the Casey Agonistes ward… read it some time – a good story by the guy who wrote The sand Pebbles – Richard McKenna…

      Casey Agonistes…..

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      So, OG, Stephen Hawking should have been killed when his disease was diagnosed? How many others, like him, have made major contributions to society despite serious disability? Personally, I would rather see greedy, self-serving narcissists killed than the good folk who suffer misfortune through no fault of their own but bravely battle on. All the disabled folk I know are loving, generous, happy, and kind. These are qualities we should cultivate, not destroy.

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      You would need to ask Stpen KHawking that question. Why should these people be allowed to battle on? That’s nothing but cruelity. Same with people in nursing homes with little or no quality of life. We are certainly cruel not compassinate humans.

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      Sounds to me like Bonny is one and the same as OG heartless / elitist scum and have NO empathy for anyone or anything!

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      The phrase I worry about, Bonny, is “Why should these people be allowed”. That means to me that you feel you should have the right to terminate the lives of a certain section of people because, in your opinion, they are worthless. That’s Genocide. Hitler, thought like you, Pol Pot thought like you, Kmer Rouge, etc.

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      Yes, Triss – but like the Good German who guarded the gate of the concentration camp, or the ‘good’ revolutionary Khmer – Bonny does not KNOW (s)he thinks that way… it’s as natural as breathing… very hard to shake…. and impossible to cure….

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      Bonny and OG are certainly not people I would like to associate with no matter how much they say they do to help other people not as well off as themselves. With their outlook on life I would be surprised if they had any friends at all, real friends I mean not just associates.

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      Ha ha if you met me I’d probably be you bestie.

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      I hope you have all opted out of organ donation as if you don’t you don’t have much chance of living if ever you go into a coma. Organs are in such short supply. I’m lucky as who is going to take a chance of life knowing they have a good chance of contracting cancer instead.

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      You wouldn’t be eligible anyway OG so why mention it.

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      Freedom is not the unconstrained right or privilege to do whatever you want – freedom is the absence of tyranny. I suspect that most would choose a different path from the tyrannical one of simply abandoning those unfortunates on a hillside in the winter snow…..

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      Every one should follow OGs advice, you won’t actually live longer but you will will sure as hell feel like it. And every day will be miserable.

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      I don’t know what miserable is as I am too busy having fun instead.

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    The LNP have got to be joking they have been banging on about debt and deficits since Rudd was PM the first time. That’s all we heard from Tony the Mouth Abbott for years and now it’s a good thing which is what most of the Australian public knew anyway. The LNP have done nothing worthwhile the whole time they have been in, just wasted years of economic opportunity,it’s time for an election to get these clowns out.

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      Morrison says it’s only selectively ‘good’ – apparently we old Lifters (retired) are now too costly to feed despite feeding these parasites for decades.

      Morrison is a pure psychopath – by definition.

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      Welfare is ”good debt” because it improves the quality of life of the less fortunate, improves social health, and pumps money into the economy that will be spent on consumables, thus driving more employment, higher business profits, and higher taxes.

      Company tax cuts, superannuation tax concessions, negative gearing, and GCT concessions are BAD DEBT because they impose cost on the public to enrich tax dodgers who hoard their obscene wealth. The money does not flow back into the economy to support growth.

      Therefore, by definition, all the policy decisions thus far made by this LNP have increased BAD DEBT.

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      Nope welfare is bad debt as it doesn’t produce anything but lazy people who do nothing for the economy.

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      Spot on Rainey, CGS, NG are all welfare for the wealthy.

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      Gosh Rainey, I didn’t realise it was that simple? To strengthen the economy and become the envy of all G20 nations. We just rebrand welfare as “good debt” then quadruple it.

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      That’s sociopath, Trebor 🙂

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      My apologies, Paulo – I sometime make a quick mistake – you are correct.

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      I did not suggest being totally irresponsible in the allocation of welfare, Frank. But paying ”welfare” to the rich and cutting taxes of those who can afford to hoard creates BAD DEBT. We should be restructuring tax and welfare programs to put more in the hands of those who spend, and at the same time to create incentives and rewards for pursuing a responsible lifestyle. Expand income support to assist people to lift themselves and their families up out of hardship, instead of using it as a means to keep people down, and the economy would improve rapidly.

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      No Frank just import another free million people. Makes the GDP look spectacular.

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      TREBOR isn’t it strange how these — “full on Christian nuts” like Morrison have no empathy at all

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      It’s the utter lack of empathy and of remorse over damage done that seriously worries me.

      Similar case with the Christians in the family recently – the ex’s daughter, the middle child between two brothers with the eldest being a Christian – was throw out of her home by her husband, and her younger brother immediately drove over and took her in for five weeks until the reality hit the husband that he was going to be THE big loser from divorce (you can’t throw your missus out on the street now without a brass razoo these days) – meanwhile the Christians (eldest and wife) did not one thing for little sister, ignored her, and actually FED the husband with bad stories about her and supported him in his lie that she’d walked out on the kids etc (he was hoping that BS line would gain advantage)…

      Really makes me wonder about those who are so intent on ‘doing the Christian thing’…. I suspect Christ would chastise them severely, perhaps even whip the money changers out of the Temple… sounds apt to me re Morrison…

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      Same type as TONY ABBOTT who was once a priest — he lied about everything he said and he has no empathy either

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      Funny thing is the ex’s best friend is a Seven Dayer (I think) – and she and her husband are the nicest and most generous people. Anyway – whatever lot it is, they were the ones accused of signaling Japanese submarines off the coast of NSW in WW II (figure that one out!)…

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    Putting in a personal scale, taking out a mortgage (at a price you can afford)is good debt, it provides a roof over your head and will (hopefully) appreciate in value. Bad debt is putting unnecessary purchases you don’t really need on your credit card.

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      Nope a mortgage on a house you live in is bad debt as it costs you money and you get no tax relief from the interest and expenses of owning it. Good debt is where you make more money than the debt costs you to have. I use good debt all the time.

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      Thank you, OG, for your support of the Trebor Party thought policy of paying home owners mortgage allowance, same as rental assistance.

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      Yes OG Someone should explain positive gearing to people and how wealth can be built slowly and surely. I’m glad I learned how to do it. No government support and I just got the CPI at just on $400. Who knows how much the insurance will cost and the crazy speculators have forced up rates as well.

      I honestly can’t work out how an OAP can afford these rising costs that are essential but don’t actually benefit you year after year. Like throwing money into a money pit.

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      Breaking news in the Trebor Times – home owners to receive tax concessions for household repairs and maintenance, along with mortgage payments….. Treasurer I. Will Screwem says this is not a new form of welfare but only fits in with the current concessions granted to property investors…..

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      Further breaking news you will now pay capital gains tax on your own home.

      Trebor that is why you can’t get tax concessions for them. Your house is not taxable.

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      Yes Rae it is obvious very few understand negative gearing here. Negative gearing is a mugs game where as positive gearing is wealth building. No point is making a loss just for a few tax crumbs. Better to have positive cash flow for those tax crumbs.

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      CG properly handled won’t hurt much anyway – it’s concessional and doesn’t even begin to match the concessions along the way…

      Vive l’egalite`

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      Come the revolution TREBOR and you will do as you are damn well told!

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      That’s always the case even with a ‘bloodless coup’ such as the orderly transfer of power in society from men to women…. the casualty list is still rising… it’s like that scene in Gone With The Wind where people go down to the post office to look at the lists of the latest deaths and injuries…

      Just saying (as an American lass I knew used to say)…

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      She was from Georgia, too – oh that southern accent…. that damned Yankee Sherman!

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      If homes are to be classed as assets for capital gains will the costs be tax deductible? I’d like that.

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      .. or as asset for the pension, Rae, or viewed as an opportunity to repay OAP as some kind of mythical debt to the government. If that is to be the case, then all costs associated with home should be deductible during working life and even paid pension life.

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      Nope the debt is against your estate not your house so nothing is deductable against the house.

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      There is no debt and never will be – and if there is any call on an estate then tax concessions need to be set in place over taxpaying life to compensate.

      I promise any government that tries that one on a nice spot in front of the firing squad…

      You are a dreamer, OG and a selfish sadist.

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      @TREBOR – “I promise any government that tries that one on a nice spot in front of the firing squad…”

      In whose reality is this going to happen? All sizzle, no sausage on this one.

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      So you are better off paying someone else $360.00 a week to help them pay off their investment property than to put that money into paying off your own home.
      So when it is paid off you are living rent free, your figures don’t work out O.G.
      If you invested the money left over after paying rent over the same time used to pay off a mortgage, how much would you have? And how much would it bring in as an income? As I said, I don’t think your figures stack up.
      For it to work out,you would have to make as much as the house is worth in that time and have it invested in a secure investment environment, the money invested would have to make the same or more than the average medial rental value in the area that you bought in.

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      Buying a home is, for most people, the most sensible financial investment you can make. OG is talking utter nonsense. If you choose to have a family, you need somewhere to live. Rent goes up every year. It takes a massive chunk of your income. A mortgage might be a strain in the first few years, but inflation rapidly reduces the percentage of your salary put to repayments and interest, and you have the option of adjusting the repayments to minimize your total interest costs. Meanwhile, the house is appreciating in value. Ultimately, you pay out the mortgage and then you have security of tenure at very low cost for the rest of your life. Just ask the OAPs who rent if a house is a good investment. They are all saying they wish they owned a home. Even OG says it’s hard for pensioners who rent, so he contradicts himself (AGAIN!)

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    “Good debt” will soon become “bad debt” if it isn’t targeted correctly, at the right areas, to boost productivity in the long term.
    “Pork barrelling” in marginal electorates very rarely falls into this category, unfortunately.

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    What a load of cods – all Morrison is doing is making some arbitrary dividing line and saying, without foundation, that some parts of government expenditure are ‘bad’ and some are ‘good’. All ideology driven and nothing else.

    Sack him.

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      But how strident was he when criticizing the ALP for increasing debt – bad debt of course. Pollies have a penchant for redefining concepts to suit themselves. Now he has an excuse for increasing debt – any debt.

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    And where, pray tell, are all these solid infrastructure projects on the horizon?

    Railways to nowhere to suit a mining rip-out?

    We need infrastructure for AUSTRALIA – not for some one-off disposable use, and that means a hell of a lot different from the current mode of non-thinking.

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      Come now TREBOR we all know how tight fisted and greedy Gina is.

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      DArn right this Adani mine crap is criminal and who the hell is going t want to use the line Barnaby Joyce wants the taxpayer to pay for whats wrong with that creep, lying dead head that he is Joyce as well as that Matt Canavan he is pure evil — what money are they ALL making out of this Adani mine — as they are all pretty p^%%ed of at the Banks not wanting to back it.

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      Damned if I can figure the LNP/IPA out. First they appear to be working for China and now India. Now foreign investment may be a good thing but not at the expense of your own people surely.

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      Or our own COUNTRY Rae, they seem to be very happy to allow foreign ownership of the best land in our country

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      Glad to see some people on the same page. The great railway line infrastructure for mining in Queensland is the answer to improving public transport and providing a great service to regional users – NOT!

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