Why are so many of our current and previous politicians so intent in diverting investment money away from local real estate such as farms and encourage the accumulation of foreign and local financial assets through the impost of a Superannuation Levy system on employees wages? While we think we are so smart with investing overseas on questionable easy investments,like the Prime Mortgage Funds, Shares and other financial instruments; the much smarter asians are buying up prime farming land using our billions spent on imported good. The imported good will sooner or later end up in landfill but the farms will still be producing food for asian countries.
Surely others can see the stupidity in public policy when both politicians and the public are so mezmerised into believing will generate a safe retirement without buying any local real estate. IMO I cant see how this direction will ever have the desired effect other than to dispossess another generation of a decent retirement as more than one extra financial crisis will surely wipe out the value of most financial assets.
Well actually, i do believe i know why Peter Costello Tresurer in the Howard government indroduced taxation incentives to encourage the sale of property to be invested into Superannuation Funds...was implemented to discourage property inflation during the Howard years which was at a high risk of occurring during those years, and explains why the govt decided to pay off debt and not reduce taxes or dish out other benefits.
IMO most Australian well watered farmland is substantially undervalued by locals but my views are confirmed by the contuing buying spree of more prime farmlands and probably helping to keep our $A higher than otherwise might have been the case. What is not known is whether the foreign buyers are using their own capital reserves or whether they are borrowing locally to fund purchses in both mining and farming assets. Too complex for me to really say...only the RBA would know.
The 9% Levy soon to be increased through bribery to 12% is no more than fools gold which in my opinion which on top of excessively high wages is assisting in the demise of Australian Industry which in addition with Carbon taxes are forcing such companies as BlueScope Steel to reduce expensive staff in Australia and employ Asian staff at around $1.50- $3 per hour.No super Levy, No Workers Comp, No EPA conditions, No Carbon Taxes, No Maternity/ Paternity Leave or Holiday Loading...maybe just some bribery?
The remaining Private Sector is then left to support the unemployable, the old, the sick and the Local, State and Federal govt workers whose benefits are underwritten through taxation. Are we going back to the Kings & Serfs of old? Where the King and his men decided what the serfs could do with their land and how much in taxes they should pay to support the King & his entourage of administrators?
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