[Max Carnage]

http://www.scribd.co...s-FOI-Documents


Edit: Thanks to Peter Martin from The Age for sharing this document.

This post has been edited by Max Carnage: 02 September 2010 - 05:01 AM

[sydney3000]

desperation:

Quote

- removing the link to residency to open an account [page 9 of 18 aka pg 1 aka (23)]

It looks like the Treasury (Retirement and Intergenerational Modelling Unit) is worried there is nobody to buy the properties off the babyboomers in the near future.

This post has been edited by sydney3000: 02 September 2010 - 12:13 AM

[staringclown]

Nice find Max

The bit about the FHSA take up rates being affected by the FHOB is funny. It reminds me of that experiment where you put a child in a room with a lolly in front of them and tell them they can have that lolly now OR they can have two lollies in one hour if they don't eat the lolly on the table. Leave the child alone for an hour. Come back and in most cases the lolly is gone.

I know labour loosened the rules in the budget but I don't know if the changes have been passed yet. If we get a coalition government I wonder if they too will try and sweeten the FHSA as the next measure to sustain the housing industry over the medium term? It doesn't work when offered in conjunction with short term incentive. This will be a problem for the vested interests.

[tom]

The bit that sh*tted me when it was introduced is the going back on their election promise that it would be salary sacrificed. If you are paying only 17% marginal tax rate then I cannot see you saving 5k per annum anyway. If they had made it salary sacrifice I think nearly all non home owners would have one. I mean what a way to save for a first home, with tax free income!

Nearly too generous but hey this is what they took with Kevin 07 to the electorate and the Libs backed it too, i.e. salary sacrifice into account. Then we get a labor government and to be "fair" to low income earners they water the thing down. I forgot about this till reading that. Thanks Max. I wonder how many people on a tax rate of less than 15% have the accounts?

and lets face it, if their assumption is house prices do not slide who on a 17% marginal tax rate could ever afford to buy a home in our capital cities unless they have come into wealth by other means. i.e. these people probably do not need the accounts to buy a home? Notice the chage is another way to bring forward demand. i.e. now you can buy a home now and put the account at it after 4 years. They would not want to actually put any demand back now would they for some time after the next election.

[staringclown]

Under the new rules the money still must stay in the account for the full term (2 years 2 days) before being allowed to be put toward the property. This is still restrictive especially for those on the margins who might want to buy sooner than the full term. A lot can happen in that time. Maybe they'll relax this restriction. Trouble is while they continue to dick around with the rules it's riskier and they'll get less take up.

[savagegoose]

did i read it right? cost to rollout the accounts, $250k, ea?
well i have a plan gimme $50k ands i wont open an account,saving the gov $200k

[Easy Tiger]

staringclown, on 02 September 2010 - 01:40 AM, said:

The bit about the FHSA take up rates being affected by the FHOB is funny. It reminds me of that experiment where you put a child in a room with a lolly in front of them and tell them they can have that lolly now OR they can have two lollies in one hour if they don't eat the lolly on the table. Leave the child alone for an hour. Come back and in most cases the lolly is gone.

But in this case the children are offered two lollies now OR they can do their chores and in a week they can have one. i.e. FTB's saw that HPI exceeded their capacity to save so no matter how hard they worked and how hard they saved the FHOG path certainly looked / looks like the losing proposition of the two


Just my humble opinion

[Easy Tiger]

Max Carnage, on 01 September 2010 - 11:08 PM, said:

http://www.scribd.co...s-FOI-Documents

Thanks for that link Max and if you are the one that scored that document through FOI -

[staringclown]

Easy Tiger, on 02 September 2010 - 04:03 AM, said:

But in this case the children are offered two lollies now OR they can do their chores and in a week they can have one. i.e. FTB's saw that HPI exceeded their capacity to save so no matter how hard they worked and how hard they saved the FHOG path certainly looked / looks like the losing proposition of the two


Just my humble opinion

Fair call. When prices are rising faster than you can save (even with the lower tax on interest and the contributions from the gov) and the spruikers are screaming at you that you will miss the boat if you don't get in now dammit NOW! Why would you delay gratification?

[Easy Tiger]

Page 17 in an email exchange

Quote

At the end of March there were 10,800 accounts.
You are now reporting 21. Is this the number of institutions?