At this stage Labor will probably win the next election ..but Ive seen swings before an election .
Labor's policy on NG is partly sound , based on the premise of shares where as you can only claim a loss against a profit as far as costs vs rental income are concerned. BUT Labor WILL NOT ALLOW losses to be carried forward as present with equities FOR BOTH shares and property. Read that again...NO carried forward losses for property AND shares...
According the RBA Governor and John Symonds of Aussie Home Loans re property market this is a recipe for a recession. ( Bowen says they are entitled to their opinion.!! ) BUT....they forgot about the turmoil not allowing carried forward losses will create in the stock market....re derivatives and margin loans and investment loans.
Currently Banks have tightened up on their lending practices and IF Labor carries out its proposed vigorous attack on the banks we could also have a further tightening and restrictions upon lending causing a CREDIT CRUNCH .
Banks are divesting themselves of the integrated model and measures to eradicate their systemic toxic culture...but it takes a while for a tanker at sea to do a u turn, its not a speed boat.
The RC was a welcome breath of fresh air .... we need healthy balance... We still need strong financial institutions...would we rather have strong banks or weak banks ala Greece ...
cheers Baxter
P.s the unconscionable proposal to steal franking credits would be solved by the abolition of the imputation system where as ALL dividends be tax free to all Australian residents and Australian based institutions shareholders . Withholding tax for others would apply.
