Housing is now officially the number one industry in Australia. It employs directly, or indirectly, one in four people in Australia, is the number one income source (through taxation) for our governments and a prominent reason our economy continues to thrive.
Now it looks like the Turnbull government is about to reward us with more money in our pay packets through tax concessions which will provide relief for some. Interestingly it comes at a time of record government debt at about $770 Billion (AUD) and no signs of reduced government spending.
We now proceed into 2018 with many analysts and commentators making headlines with the “ex post facto” comments on the falling condition of the property market. So, it appears that the government has decided that it is a good idea that tax payers continue to meet the commitments of over inflated housing prices.
Why wouldn’t they? After all, government revenue now relies on increasing property prices and interest in the property market. The government owes a record amount, cannot cut spending, cannot rely on a sufficient rise in resource prices and is walking a tight rope with China our number one trading partner.
The large portion of the Australian population is fast approaching retirement with blossoming thoughts of high asset wealth in their property holdings, and it appears that the government is happy for the “Australian Dream” to prosper. They don’t have a choice and it means that the personal tax concessions being mooted might really be relief for the government, more than its people.