No tax concession does less to stimulate innovation or employment than the capital gains tax exemption on luxury homes. Indeed, by encouraging the most wealthy Australians to park billions of dollars in spare bedrooms that gather dust and detritus from Christmases past, the exemption simply diverts capital away from productive uses.
Originally published in the Australian Financial Review - here.
The differences between rugby league and rugby union, like the differences between the disciplines of economics and finance, can seem obscure to those who aren't fans of either. Subtle though they may be, small differences can have big impacts on the end result. Indeed, those small differences help explain why, despite the record-low coal price, there are 50 new coal mines being proposed in Australia.
First published by The Australian Financial Review - here.
The mining boom tax cuts have left the Australian budget unable to collect the revenue needed to fund the services that Australians expect from their government.
The Treasurer's insistence that there is no revenue problem, combined with the received political wisdom that the family home is off-limits in the tax debate, makes finding solutions difficult.
In the lead-up to the 2013 election both the Coalition and the ALP pledged to make no changes to the superannuation system in the coming term of government. Stability, we were told, was what the system needed. Less than three years later both major parties are promising to change the superannuation system. Reform, we are told, is what the system needs.
First published in The Australian Financial Review - here.
If you think that world demand for coal is going to grow in the coming decades, then it makes sense to build the 50 new coal mines proposed for Australia.