Banks racing to raise interest rates
Well, the rise in interest rates has started...good news for retirees, not for home owners and investors.
CBA, ANZ, NAB, WESPAC and St George have done so...the rest will no doubt follow
The reason you get less GST returns is that you get royalties .
Thr grants commission is the one that tries to smooth out for the mendicant States of SA and Tasmania .
NSW will now suffer as it runs its economy more effiently
The Mining Royalties were included in the returns for the GST carve up
WA lost almost every cent it raised in iron ore royalties over the past decade as the Commonwealth Grants Commission redistributed the benefits of the mining boom to the rest of the nation.
A breakdown of the commission’s rulings since 2006 and the State’s mining royalties reveals $39 billion that swelled WA coffers was lost in the annual GST carve-up.
Victoria has been the biggest winner from the WA mining boom, prompting calls from the mining sector to change the grants commission process.
Every year the commission looks at the revenue and costs facing each State and Territory, redistributing GST based on the relative strengths or weaknesses of each.
In its most recent allocation, under which WA will get 34.4¢ of every dollar raised in GST in the State, almost $5.8 billion worth of “mining production” was moved between the States and Territories. WA accounted for $5.3 billion of the total that was moved to other areas.
Since the middle of last decade, WA has lost almost $39 billion under the GST carve-up because of its relative strength in mining.
http://www.perthnow.com.au/news/western-australia/wa-loses-39-billion-in-gst-carveup/news-story/b5c0874c24962880467a66912f04ae38?utm_source=emarsys&utm_medium=email&utm_campaign=PerthNow+PM+update+31%2F3%2F17
Well we will have to agree not to agree Brocky.........our things here in the WEST most of which come from the EAST are more costly. Not only that we don't have the selection of goods like the EAST. WA needs to expand at the rate the EAST does but it won't because the politicians will not let it.
If we could have a manufacturing sector to make us self sufficient we would not need to have all the antiquated transport from the EAST. Road trains in this day and age I aske you!!! It should be rail.
Federal Government needs to make a purpose built rail link for rail cars like the USA did, but because of the small population I don't think it viable.
Hubby was privy back in 1990 to try and get the fast train going in the EAST but that fizzled out too.
Imagine if the USA had the same issues in the 1860s and then that country would not have expanded at the rate it did when it did.
Australian politicians have blinkers on. They spend too much time fighting eachother in both Houses instead of being productive.
As far as renting goes I have know people that rented and even though they looked after the places they were often told they had to move out because the owner was selling -- I myself like to be settled and know I am there for the long haul
Absolutely right. I have a friend in her mid 70's who lost the lot in 1987 due to her (now divorced) husband's poor investment strategy.
She has been renting the same home for 16 years....now she has been given her marching orders because the house is to be sold.
All very stressful for her at 75...also finding a place she can afford is also a problem.
Renting would never, ever suit me.
The only time we have rented when on transfer then the organization paid the rent! Then when we returned from a long overseas transfer we could not get back into our home and had to wait for the Lease to expire.
Radish hi.
Has your friend not got assistance from the government? Surely at her age she is entitled to housing assistance.
Perhaps the vendor of the house she rents is in a financial position where they cannot afford to keep looking after the house.
The tenants only care for so much, perhaps they need to sell. Surely you cannot hold that against them?
In the UK [unlike WA] the tenant has to pay the Rates of the property besides pay the weekly rental.
Renting can be a good option for people wanting to invest money for early retirement rather than in real estate.
That is provided they save every cent that they save in rates, interest payments,insurances or other costs involved in paying a mortgage, in a good investment fund. Otherwise the numbers don't add up.
As most people I know of are not capable of doing this, in most cases it is not a good option, especially in this age of instant gratification.
If one doesn't mind a tight fit..micro apartments might be just the thing..becoming very popular in our capitals...cheap..and close to the CBD..
Micro apartments all in the plan -- see here
https://www.google.com.au/search?q=Micro+apartments+and+agenda+21&ie=utf-8&oe=utf-8&channel=fs&gws_rd=cr,ssl&ei=XEXgWJSBNYa-0ASsmLPQCw
All right for you in the EAST you have our royalties that we need in the WEST.
We still need roat maintenance, the distance between towns here in the WEST is massive.....
Just think of Queensland, NSW and Victoria as one state!!!