This week we’re discussing the Labour government’s newly released state budget, and Treasurer Tim Pallas’s plan to fill a large hole in the budget, caused by the downturn in the property market and subsequent slump in stamp duty revenue.
Since November 2018, revenue forecasts from stamp duty have been revised down by 5.2 billion. To help generate revenue to make up for the hole in the budget, tax paid by foreign property investors will increase 1%, and tax paid by absentee landowners will increase 0.5 %; both in line with New South Wales rates.
Other news in the ‘budget of hard choices’, includes a forecasted surplus of $1 billion for 2019-20, growing to $4.9 billion in 2022-23. In parallel with the surplus, the net state debt will more than double over the same duration to $54.9 billion by 2022-23, to pay for the Melbourne Airport Rail Link and the Suburban Rail Loop.
Listen in to hear Brett, Joel and Louis discuss the Victorian state budget now.
This Week’s Investor Exchange Round Table Covered:
- AustralianSuper Pty, plans to expand overseas to seek more investment opportunities, opening an office in New York and expanding in London. Listen in for Joel’s insights on the advantages of investing in overseas companies. (17:24)
- Joel raises the issue surrounding a lack of diversity in Australian export markets. With 80% of exports being commodity based, and only 20% of exports being service-based, we haven’t been successful in broadening our spread of exports. Listen in on what this may mean for investors. (26:28)
- We’re only days away from the 1st of June, which means: Tax time! Listen in as Louis shares the top 4 tax concessions. (32:52)
You Cannot Be Serious:
A police officer in Lincoln Nebraska arrested a 26-year-old man for various nasty charges, who tried lying about his identity while wearing a name tag!
A Boston man returned home with his young child to find his backdoor wide open. Expecting he had been robbed, he was pleasantly surprised to find the intruder cleaned his entire home. Speculators suggest a house cleaner turned up to the wrong address, broke in, and cleaned up!
Write in to get your investment and wealth management questions answered by Joel, Brett and Louis.
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Image Source: The Australian