Search

"The Great Divide" by Alan Kohler is a compelling account of Australia's housing crisis and its potential to divide society. The author argues that the main driver of unaffordable housing is the difficulty of building more homes in established suburbs. However, the proposed solutions in the article are deemed unlikely to work and distract from the need to build more homes. The political tide is shifting towards supporting more density, and there is growing awareness of the costs of restricting development in desirable suburbs. The article suggests that denser cities not only offer more affordable housing but also bring amenity, vibrancy, and walkability. The alternative solution of building faster trains to peri-urban and regional areas is criticized as unfair, costly, and ineffective. The article concludes that the heart of the housing problem is the lack of housing supply and calls for a focus on building more homes in desirable suburbs. [Extracted from the article]

A report from the Grattan Institute reveals that state and territory governments in Australia would actually benefit if the federal government no longer allowed them to select skilled migrants. The report shows that migrants selected by state governments for state and regional points-tested visas tend to work in lower-skilled jobs and earn less over their lifetimes compared to other skilled migrants. Additionally, many regional visa-holders struggle and do not stay in the regions for long. The report suggests that the federal government should abolish state and regional points visas and allocate more skilled independent points visas instead, which would result in a more skilled migrant cohort and boost government budgets. State governments would be among the biggest winners from these proposed reforms. [Extracted from the article]

The article discusses potential reforms to Australia's skilled migration points test for visas. The points test allocates points to potential migrants based on characteristics such as age, English proficiency, education, and work experience. The article argues that the current system has three key problems: it does not reward the most skilled migrants, it has unnecessary points for certain characteristics, and it limits access to high-skilled occupations. The authors propose several changes to the points test, including increasing the maximum points available, offering more points for higher degrees and skilled spouses, and opening points-tested visas to all high-skill occupations. These changes are expected to increase migrants' long-term earnings, boost government budgets, and improve Australia's productivity. [Extracted from the article]

The article discusses the housing policy debate in Australia and critiques economist Cameron Murray's book, "The Great Housing Hijack." The author argues that Murray's analysis is inconsistent with the evidence and his proposed solution is a distraction. The article also highlights the importance of planning and zoning rules in influencing housing supply and the need for affordable housing options. It suggests that governments should follow through on proven solutions and not be swayed by distractions. The article concludes by mentioning the steps that the Australian government has taken to address the housing crisis. [Extracted from the article]

The article discusses the challenges of addressing the housing crisis in Australia, particularly in relation to social and affordable housing. It argues that private investors and super funds are unlikely to voluntarily pay for the rental subsidies required for social housing, and that government funding is necessary. The article suggests that the government should prioritize social housing over affordable housing, as it targets those at serious risk of homelessness. It also proposes doubling the size of the Housing Australia Future Fund and increasing Commonwealth Rent Assistance to support the construction of more social dwellings and assist low-income renters. [Extracted from the article]

The government's Help to Buy scheme, which is currently before parliament, aims to provide equity contributions for home purchases. However, the scheme's impact on house prices is expected to be minimal, with an estimated overall increase of 0.016% after four years. While the scheme could benefit some Australians struggling to own a home, there are concerns about its limited availability and eligibility criteria. The Grattan Institute suggests that a more targeted approach with reduced income thresholds and stricter deposit requirements would be more effective in addressing the housing crisis. [Extracted from the article]

The article discusses the recent tax cuts proposed by the Australian government and argues that they do not constitute genuine tax reform. The author suggests that true tax reform would involve a shift towards more efficient taxes, such as taxes on wealth, land, and natural resources. They also propose reducing tax concessions on superannuation, capital gains, and trusts, as well as redesigning the goods and services tax (GST). The article emphasizes the need for comprehensive tax reform to address the budget deficit and ensure the government's ability to meet future spending demands. [Extracted from the article]

The Albanese government's decision to revise the Stage 3 tax cuts has sparked controversy. The government argues that giving larger tax cuts to low- and middle-income earners justifies breaking an election promise. The revised tax plan will benefit the majority of taxpayers, with those earning less than $146,486 receiving the same or larger tax cuts. However, bracket creep will reduce the value of these tax cuts over time. While the revised plan will increase tax revenue by $28 billion over 10 years, it will also make average tax rates rise more quickly for some upper-income earners. Despite this, about 83% of taxpayers can expect to pay the same or less tax over the next decade compared to the original Stage 3 plan. However, the biggest loser from the new tax plan may be the federal budget, as it is expected to cost over $20 billion a year. The government's tax plan will make it harder for future governments to meet community demands for increased spending in areas such as healthcare and defense. [Extracted from the article]

Australia is experiencing a shortage of housing, with high rents and low vacancy rates. While net overseas migration has reached a record high, many migrants lack the skills needed to contribute to the construction of new homes. Only a small percentage of recent migrants work in construction, and the majority of those in the construction industry have been in Australia for a long time. The government can take steps to attract skilled trades workers, such as making it easier for employers to sponsor skilled trades workers for visas and streamlining the skills and licensing process. [Extracted from the article]

Fix visa pathways for talented graduates Second, Australia should fix the pathways for talented graduates after they finish their temporary graduate visa. A new Grattan Institute survey of employers shows many are reluctant to hire international graduates, especially because of uncertainty about whether they can stay and work in Australia once their temporary graduate visa expires. [Extracted from the article]

A concession offered to the Greens during negotiations means thehousing fund will have to spend a minimum of $500 million a yearon social and affordable housing (a figure that was previously amaximum) regardless of the fund's returns in any particular year. The fund will need more than $10 billion The government says in its first five years of operation the $10billion HAFF will help fund the construction of 20,000 socialhomes and 10,000 affordable homes. [Extracted from the article]

Better security for renters The second part of the plan - better, and nationally consistent,rights for renters - is an important step towards deliveringgenuine security of tenure. The plan has two key objectives: * to remove constraints to building more homes inestablished suburbs * to give renters more rights As Grattan Institute has long argued, each is crucial. [Extracted from the article]

Action against employers When it comes to employers, the government will empower the Australian Border Force with more funding, higher penalties and new compliance tools to target those that exploit migrant workers. Our recent report for the Grattan Institute, Short-changed, found that as many as one in six migrant workers are paid less than the national minimum wage, which is meant to be the least a worker in Australia can be paid. [Extracted from the article]

Stamp duty is a bad tax Originally intended to be abolished as part of the deal to introduce the goods and services tax back in 2000, stamp duty on commercial and industrial properties accounts for about one-fifth of all stamp duty revenues collected in Victoria. Read more: Victoria bites $117 billion bullet, begins the long march of land tax reform Stamp duty even acts as a tax on divorce. The Australian Capital Territory is well on the way to abolishing them as part of its broader property tax reforms, which will see stamp duty replaced with a broad-based land tax for all types of property over two decades. [Extracted from the article]

The federal government needs to reform the visa rules that make migrants vulnerable, boost resources to enforce workplace and migration laws and make it easier for migrants to claim money owed. Without change, underpayment will rise again Rates of underpayment for migrant workers and locals alike have fallen since the pandemic began In 2018, 8% to 22% of recent migrants were paid less than the minimum hourly wage (compared with 5% to 16% in 2022). From working 20 to 30 hours of unpaid overtime each week in one of Australia's fanciest restaurants to picking fruit while being exposed to dangerous chemicals for less than $10 an hour, the underpayment of migrant workers is rife. [Extracted from the article]

By targeting these exemptions to first home-buyers, both sides of NSW politics and other state governments are undercutting the key benefit of removing stamp duty: removing the tax on moving. This has left NSW Labor in the unfortunate position of being against the bad tax (stamp duty) but also against the good tax that would have to replace it: land tax. Here's how to move to a better system The NSW Labor opposition pledged to abolish stamp duty altogether for first home buyers purchasing properties worth up to $800,000 -- expanding the current exemption which is for homes worth up to $650,000. [Extracted from the article]

Housing is draining the incomes of the poor People on low incomes, who are increasingly renters, are spending more of their incomes on housing. Compared to the rest of the world, income inequality is not particularly high in Australia, nor is it getting much worse - until you include housing. But more than half of this was chewed up by skyrocketing housing costs, with post-housing incomes climbing only 12%. [Extracted from the article]