Oz war on cash begins

I couldn't understand what they hell he was going on about. Then I found a few articles on it and yes it's true.

http://www.theaustralian.com.au/bus...bank-deposit-tax/story-fnp85nwc-1227284794476

Joe Hockey has made it clear that the government does propose to introduce such a levy in the federal budget. He makes no bones about it being a revenue-raising measure. At the mooted 0.05 per cent rate, the levy could raise as much as $400 million a year. He's proposing a new tax, not a banking sector reform.
Click to expand...
 
Jokes on them coz we Aussies are cash poor!

Last I heard they were proposing a 0.05% tax, so $5 for every $10,000
 
We'll know in the next few weeks. Just seems like guess work to me, without references.
 
Yep. A tax on ALL savings. Many of us saw that coming.

There doesn't seem to be a minimum limit. First 0.05% then 0.1% .... etc
 
How does that work for people with offset accounts or debts. Does any of that get taken into consideration?
 
Jislizard said:
How does that work for people with offset accounts or debts. Does any of that get taken into consideration?
Click to expand...

It's simple. If the account has more than $0.00, then the tax applies. Regardless of the account type.
 
The government could raise much more revenue if they consider a 0.05% tax on debts owed to the bank (payable by the debtor, of course).
 
Jislizard said:
How does that work for people with offset accounts or debts. Does any of that get taken into consideration?
Click to expand...

I'm going to take a punt and say that they aren't effected. Given Australia's nosebleed personal debt levels, this proposal alone would bring the budget back to surplus in a day :P
 
Don't worry. This government is headed to oblivion. This budget will be the double dissolution issue that Abbott will use as a 'crash through or crash' measure - which is what the backbenchers are terrified of. Turnbull expressed as much 12 months ago. Abbott is a political fool and has probably got together with Hockey to try and survive or die.

It will take at least another election and a budget before Labor manages to get this into place. Plenty of time to spend every penny.
 
JulieW said:
Don't worry. This government is headed to oblivion. This budget will be the double dissolution issue that Abbott will use as a 'crash through or crash' measure - which is what the backbenchers are terrified of. Turnbull expressed as much 12 months ago. Abbott is a political fool and has probably got together with Hockey to try and survive or die.

It will take at least another election and a budget before Labor manages to get this into place. Plenty of time to spend every penny.
Click to expand...

It looks like they are both set on implementing it. My guess is they'll get it passed before the next election, then Labor will never repeal it, perhaps even increase it.

Sources have told AFR Weekend that the government is set to proceed with the bank deposits insurance levy, first proposed by the former Labor government, to shore up revenue and to act as an alternative to forcing banks to hold extra capital as insurance against collapse.
Click to expand...
 
willrocks said:
JulieW said:
Don't worry. This government is headed to oblivion. This budget will be the double dissolution issue that Abbott will use as a 'crash through or crash' measure - which is what the backbenchers are terrified of. Turnbull expressed as much 12 months ago. Abbott is a political fool and has probably got together with Hockey to try and survive or die.

It will take at least another election and a budget before Labor manages to get this into place. Plenty of time to spend every penny.
Click to expand...

It looks like they are both set on implementing it. My guess is they'll get it passed before the next election, then Labor will never repeal it, perhaps even increase it.

Sources have told AFR Weekend that the government is set to proceed with the bank deposits insurance levy, first proposed by the former Labor government, to shore up revenue and to act as an alternative to forcing banks to hold extra capital as insurance against collapse.
Click to expand...
Click to expand...

Yes indeed. I'm actually expecting this current mob to make history by being the only ever democratically rejected government without a successful budget in their term.
 
JulieW said:
willrocks said:
JulieW said:
Don't worry. This government is headed to oblivion. This budget will be the double dissolution issue that Abbott will use as a 'crash through or crash' measure - which is what the backbenchers are terrified of. Turnbull expressed as much 12 months ago. Abbott is a political fool and has probably got together with Hockey to try and survive or die.

It will take at least another election and a budget before Labor manages to get this into place. Plenty of time to spend every penny.
Click to expand...

It looks like they are both set on implementing it. My guess is they'll get it passed before the next election, then Labor will never repeal it, perhaps even increase it.

Sources have told AFR Weekend that the government is set to proceed with the bank deposits insurance levy, first proposed by the former Labor government, to shore up revenue and to act as an alternative to forcing banks to hold extra capital as insurance against collapse.
Click to expand...
Click to expand...

Yes indeed. I'm actually expecting this current mob to make history by being the only ever democratically rejected government without a successful budget in their term.
Click to expand...

Wayne Swan never had a successful budget Julie.
 
Results not typical said:
JulieW said:
willrocks said:
It looks like they are both set on implementing it. My guess is they'll get it passed before the next election, then Labor will never repeal it, perhaps even increase it.
Click to expand...

Yes indeed. I'm actually expecting this current mob to make history by being the only ever democratically rejected government without a successful budget in their term.
Click to expand...

Wayne Swan never had a successful budget Julie.
Click to expand...

Sorry, my error, 'successful' equals 'passed'.
 
This new Joe Hockey tax is going to raise $500M per year apparently. Thinking back to that $8.8 Billion he gave to the RBA in 2013 when he was elected. He will need almost 17 years of this new tax just to cover that ridiculous financing of the central bank.

Back then that $8.8B was worth something too, before the AUD tanked.

17 years of a new tax just to crawl back the money previously extracted from the tax payer and given to the money printing central bank. Awesome economic management there. Bring it home Joe!
 
CriticalSilver said:
This new Joe Hockey tax is going to raise $500M per year apparently. Thinking back to that $8.8 Billion he gave to the RBA in 2013 when he was elected. He will need almost 17 years of this new tax just to cover that ridiculous financing of the central bank.

Back then that $8.8B was worth something too, before the AUD tanked.

17 years of a new tax just to crawl back the money previously extracted from the tax payer and given to the money printing central bank. Awesome economic management there. Bring it home Joe!
Click to expand...

The money will all be spent before those 17 years are up. Eventually there will be a justification to move in into general revenue, or budget "emergencies" that necessitate dipping into that ready pool of cash (assuming they keep it in cash and not play silly buggers by investing it in something that will be wiped out if there is a financial event big enough to cause a bank collapse.)
 
You must log in or register to reply here.
Back
Top