So the govt has finally pulled fiscal levers. That’s good. Still take issue with the design of it for shares (the tax free threshold should apply to capital gains)
Mshell on
In other words, the changes ‘risk’ doing what they are supposed to do…
Jealous-Hedgehog-734 on
Hopefully a cooler housing market will reduce inflation. We need a sustained period of wealth-effect moderation and higher rates to allow inflation expectations to normalise, 5.9% is far too high.
Economics-Simulator on
RBA is a joke
“Inflation is too high! we need to raise rates to stop inflation!”
“why are you trying to reduce housing prices, dont you know that will cool the market?”
patslogcabindigest on
For years people have been asking the government to use fiscal policy to quell inflation rather than relying solely on monetary policy from the RBA.
We actually have that in this budget. Taxation being used as a deflationary tool, targeted at the generation most responsible for inflation that is basically unaffected by interest rate increases. Somehow people will think this is a bad thing.
5 Comments
So the govt has finally pulled fiscal levers. That’s good. Still take issue with the design of it for shares (the tax free threshold should apply to capital gains)
In other words, the changes ‘risk’ doing what they are supposed to do…
Hopefully a cooler housing market will reduce inflation. We need a sustained period of wealth-effect moderation and higher rates to allow inflation expectations to normalise, 5.9% is far too high.
RBA is a joke
“Inflation is too high! we need to raise rates to stop inflation!”
“why are you trying to reduce housing prices, dont you know that will cool the market?”
For years people have been asking the government to use fiscal policy to quell inflation rather than relying solely on monetary policy from the RBA.
We actually have that in this budget. Taxation being used as a deflationary tool, targeted at the generation most responsible for inflation that is basically unaffected by interest rate increases. Somehow people will think this is a bad thing.