Difficult to find taxes that would hit the current beneficiaries of the current economic circumstances. And as alluded to before taxes take time to start and stop
Franking credits-held as a reason for Shorten losing election
Minerals resource tax-major reason for downfall of Julia Gillard
GST-would stoke inflation further in short term
Negative gearing-held as other reason for Shorten losing election and in short-term would fuel rental increases. In medium to long term would curb house prices (politically tough but arguably would be better for Australia of future. Having said that would hamper current earners ability to accumulate wealth as many older investors will have more positively-geared properties)
Which goes along with
Reducing discounted CGT on property investments-politically tough and why should an investment in an ASX-listed property company be taxed less than a private property investment. Tax gains likely to take years to come to fruition and would be a disincentive to sell
Reducing the discounted tax on super earnings from say $3M to $1.9M. People would just move money out of super into standard investments with many retirees on low tax regimes.
Tax withdrawals from super-good luck that
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Overall, I think mortgaged people will continue to do what they have always done when confronted with mortgage stress:-cut spending, take a second job, secondary earner go from PT to FT. Increasing income tax revenues suggest people are doing this already. Not saying this is 'fair' but the politics is too hard to do otherwise.
I think retail businesses with reduced money coming in will be a bigger problem than mortgage defaults
Also aware that AFF probably has a higher proportion of winners than general population.
Am a bit worried that interest rates won't fall fast as mortgage payments/rent are part of inflation which acts paradoxically to the monetary policy intention
