How are we (Australia) going to pay for this COVID-19 spending?

[p--and--t]

Can pretty much guarantee your third point will not be a part of any plan

I’m firming my personal bet on:

- Permanent increase in base GST eg 10->15%
- On top of this a temporary increase in GST eg new base of 15% plus extra 5% for X years
- Medicare style levy surcharge for all taxpayers eg +2%, potentially with a +1% extra on high income earners

One of the closest & logical contributions I think.

I'm not an accountant nor an economist or banker or anywhere near associated profession so no specific figures & just guesses:

GST changes will be the easiest & quickest to implement and (1) help the states get back on course (2) give an excuse not to fund a lot of the things the feds currently fund/co-fund. Possibly not just a percentage increase but broadening the base to many of the items currently exempt.

Review with an eye to trimming & lengthening of timelines on capital intensive projects unless there is an associated counterbalance reduction in dole payments.

A lid on foreign donations/assistance

Potentially reduction in the co-funding budgets of education (particularly on the capital side/ new schools) on the basis a lot of distance learning becomes the norm.

Medicare levy increase/surcharge to get back some of the costs of the boost to the healthcare system, pay for the temporary taking over of the private hospital system amongst others and the ongoing costs for PBS, PPE etc until a vaccine is delivered and administered to the majority of the population..

Freezing/delaying of any income tax cuts previously promised. A look at eliminating some heavily used tax deductions/concessions/rorts. Enough to recover revenue losses but not enough to get kicked out of office or lose major backers.

Injection of additional currency into the economy in the hope inflation will catch up in 4-5 years time.

Close scrutiny to see if there is anything they can sell off for a good price.

Less of a focus on free market deals and subtle moves to self reliance in a number of areas especially those that are labour intensive/generate jobs

 

[pauly7]

The GST revenue goes back to the states so the fed would not gain directly.

Exactly dear Dr Watson

 

[Johnno101]

I think we will go nationalistic as well....expect the nationalising of assets previously sold off.

 

[Cossie]

Exactly dear Dr Watson

But the states are suffering as well, aren't they, so why not raise the GST, and maybe ditch payroll tax.

Being a nimby, just don't scrap franking credits!

 

[p--and--t]

Given some of the most surprising turnarounds in attitude and actions in the last 2-3 weeks (think: daily meeting with unions, gov funded childcare, wage subsidies and a dozen more) maybe we will see some of the oppositions shopping list of tax changes taken to and rebuffed at the last election being closely scrutinised for "re-invention" and "re- marketing" as revised policy to help refill the coffers. Coming to mind of the changing attitude is some of the statements of the education minister months back along the lines of free childcare was nothing short of communism.

 

[cove]

We will have a baby boom from this isolation. These children can pay it all off around 2050.

 

[burmans]

I think we will go nationalistic as well....expect the nationalising of assets previously sold off.

Well, why not if you can get them cheap!

 

[juddles]

Whatever the mechanism, I hope it is "fair". Through no intrinsic fault of their own, many businesses are being annihilated by this thing, whilst others are absolutely thriving.

 

[amaroo]

Fix the tax system, abolish family trusts, reduce immigration. Increase the GST and income tax.

Don't forget about demolishing "defined benefits schemes"

 

[amaroo]

As long as you as a migrant are willing to fend for yourself

Ministers for the of Home Affairs Website

Minister for Home Affairs, Minister for Immigration, Citizenship and Multicultural Affairs, Minister for Emergency Management.

minister.homeaffairs.gov.au

Two things...

1. You can leave anytime you want, or you had the chance prior to border restrictions

2. IIRC you sign a declaration stating you can economical fend for yourself

I'll add a third... what do you think Australians stranded around this globe are facing? The papers are full of desperate stories.

 

[amaroo]

The GST revenue goes back to the states so the fed would not gain directly.

Other than paying for things like.... fires, floods, cyclones, viruses, life, and just about everything else these days.

 

[CaptJCool]

Don't forget about demolishing "defined benefits schemes"

They are all closed now....
Future fund to pay for those of us in one of the closed schemes which in the scheme of things is a few 100,000s

 

[amaroo]

They are all closed now....
Future fund to pay for those of us in one of the closed schemes which in the scheme of things is a few 100,000s

Things have changed. Looking very much like we need to look at all the low hanging fruit - these schemes appear totally disgraceful! About time they are exposed and talked about in the open. If all things are on the table - well, let it all hang out.

I'm sure unpleasant exposure is coming.... the conversation will move quickly towards the public service including the completely unbalanced superannuation contributions ... it's only a mater of time.

 

[CaptJCool]

Things have changed. Looking very much like we need to look at all the low hanging fruit - these schemes appear totally disgraceful! About time they are exposed and talked about in the open. If all things are on the table - well, let it all hang out.

I'm sure unpleasant exposure is coming.... the conversation will move quickly towards the public service including the completely unbalanced superannuation contributions ... it's only a mater of time.

Here you go
Read away....
Not quite the rivers of gold that was suggested .....

Superannuation costs and reports | Department of Finance

Military schemes -
These often don’t have short & medium term employees. Retirement age can be like 42 so annual pensions are often low and taxable

former

https://www.csc.gov.au/-/media/Files/DFRDB/Factsheets/DB04-dfrdb-retirement-benefits.pdf

Immediate prior scheme

https://www.csc.gov.au/-/media/Files/MilitarySuper/Factsheets/MS31-maximum-benefit-limits.pdf

 

[amaroo]

I'll leave this here - for the ones that can't be bothered reading, and why would you! Some of us get 9.5% as super contributions, most get nothing as sole traders or businesses owner that don't take a wage!

What do think the PS get? 15.4% .... Yeah, take a glance at your super contribution and compare!

Do public servants receive too much superannuation?

Critics who want to cut the 15.4% contribution forget that most workers' savings are inadequate.

www.smh.com.au

 

[Hvr]

Things have changed. Looking very much like we need to look at all the low hanging fruit - these schemes appear totally disgraceful! About time they are exposed and talked about in the open. If all things are on the table - well, let it all hang out.

I'm sure unpleasant exposure is coming.... the conversation will move quickly towards the public service including the completely unbalanced superannuation contributions ... it's only a mater of time.

What about pollies and military personnel? Some good lurks with DFRDB if you know how to play the game.

 

[amaroo]

What about pollies and military personnel? Some good lurks with DFRDB if you know how to play the game.

Simple - they are public servants.... or, am I missing the obvious ?

 

[CaptJCool]

What about pollies and military personnel? Some good lurks with DFRDB if you know how to play the game.

Pollies definitely although Howard shut the lucrative scheme

DFRDB background content. Because the scheme closed in 1991 the members retiring today have been there a LONG Time.

https://www.ombudsman.gov.au/__data/assets/pdf_file/0021/109128/FINAL-DFRDB-investigation-report.pdf

 

[CaptJCool]

I'll leave this here - for the ones that can't be bothered reading, and why would you! Some of us get 9.5% as super contributions, most get nothing as sole traders or businesses owner that don't take a wage!

What do think the PS get? 15.4% .... Yeah, take a glance at your super contribution and compare!

Do public servants receive too much superannuation?

Critics who want to cut the 15.4% contribution forget that most workers' savings are inadequate.

www.smh.com.au

Yes, and
No bonuses and
No reduced interest rate on bank loans and
no employee share schemes and
no million $ salaries for Executives.

There maybe a few Commissioners across the APS on salaries around $850,000 - and no share options - far cry from Comyns at CBA $8 million nor Joyce at Qantas $24 million

That said, 9.5% Less Upto 6 fees & insurances = around 6.5% for ordinary employees is seriously insufficient - part Age Pension anyone.

PS Those average public service pensions qualifies BOTH single and couples to part AGE pension

 

[amaroo]

They are all closed now....
Future fund to pay for those of us in one of the closed schemes which in the scheme of things is a few 100,000s

What makes you confident the future fund won't be tapped for general funding? This is a 1 / 100 year event, good luck thinking a certain section of the community is safe - selfish much!