Minister wants to flood land market

New Housing Minister Bill Marmion has shocked the property market by saying he wants to flood WA with housing lots to cut home prices.

In a speech to Parliament that has set alarm bells ringing throughout the real estate industry, Mr Marmion said the Barnett Government’s aim was to “bring house prices down”.

“The Department of Land is looking at this issue very closely,” he said.

“It owns land and it is looking at its land stocks and will release as much land as possible.

“That will reduce the pressure on housing supplies. Our aim is to bring the median house price down and to have it lower than the median house price in other States.”

Mr Marmion, who took over the job last month after Troy Buswell was sacked, said the only thing the Government could do to achieve its aim was “release more land and houses”. He refused to elaborate on his comments yesterday.

March quarter figures from RP Data put the median house price in Perth at $480,000, equal to Darwin, but behind Sydney ($500,000) and nation-leading Canberra ($510,800).

Hobart had the cheapest prices in Australia at $323,750.

The State Government established an Office of Land and Housing Supply in Thursday’s Budget and is reviewing available government land which Premier Colin Barnett said would “achieve a comprehensive and co-ordinated approach to housing affordability issues”.

Shadow housing minister Mark McGowan warned the policy could result in houses being worth less than what people paid for them.

“If people go into negative equity with their house, that’s the worst possible outcome,” he said.

Real Estate Institute of WA chief executive Anne Arnold said Australians stored their wealth in the family home and it would be “politically unwise for any government to go down that path”.

But the plan won support from developer Nigel Satterley, who said land needed to become more affordable.

But he said the policy would not cut the price of existing houses.

“We’re on the cusp of a block shortage and whatever the Government can do should be encouraged,” Mr Satterley said.

Analysts at RP Data found in April that houses in Perth’s cheapest suburbs cost at least $60,000 more than those in the most affordable areas in the other major Australian cities.

Hillman was named the cheapest suburb in Perth, with a median house price of $280,000 – higher than the cheapest suburb in Adelaide ($200,000), Brisbane ($205,000), Melbourne ($218,000) and Sydney ($219,000).

Perth had less than 10 per cent of its 259 suburbs with a median house price under $350,000, compared with more than 20 per cent in all other big cities.

Blocks of land in Perth were the most expensive in Australia, according to a recent analysis by RP Data and the Housing Industry Association, with a single square metre of “prime earth” now costing an average of $521.

Source  :  www.thewest.com.au

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Small business and general business tax break ends 31st December 2009

Businesses can claim an additional tax deduction when they buy certain assets, and when they spend money to improve existing assets, for a limited time. It’s called the Small Business and General Business Tax Break – ‘business tax break’ for short.

The Australian Government announced the tax break as an ‘investment allowance’ in December 2008 aimed at helping businesses meet the challenges of the economic downturn.

The government later extended this tax break in the May Budget to allow small businesses to claim a 50% tax deduction on eligible assets bought by 31 December 2009.

Source  :   www.ato.gov.au

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Budget Traveller’s Guide to Sleeping in Airports – Website

For travellers who are REALLY on a budget and are looking for a way to skim a few bucks off their travel expenses, why not consider sleeping in an airport? 

Why spend money on a night in the airport hotel when an inflatable raft on the airport floor is free? Sure, it may sound a little cheap and degrading at first, but read-on and you’ll soon discover a travel community, that for 13 years has been sharing their airport sleeping experiences and travel advice with fellow airport sleepers around the world. Airport sleeping is no longer just for the poor young backpacker. Nowadays, you’ll find travellers of all ages and income brackets stretched out on airport floors around the world.

So now, sit back….get out your travel itinerary and read the latest airport reviews.  You are about to discover which airports you can sleep in safely and comfortably and those which you should avoid altogether on your next trip.  Your friends and family may look at you funny when you return with your airport stories, but as you’ll read here and on our blog, that’s only part of the adventure.  

Whether you sleep in an airport overnight by choice or get stuck in the airport due to an airline problem or weather delay, let sleepinginairports.net help you make your stay more tolerable.  Together with a hearty dose of your sense of adventure, unnecessary airport hotels are about to become a travel expense of your past!

Visit  :  www.sleepinginairports.net

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Australia is still open for business

Despite the current financial troubles plaguing the world, the Australian government continues to welcome business migrants who want to move to Australia to establish and operate a new business or purchase and operate an existing business.Migration opportunities also exist for people who wish to invest in Government bonds. Australia’s states and territories are competing in a bid to sponsor business people from around the world in an effort to attract investment and suitable migrants to their cities and towns. At the same time the Australian government has been at pains to stress the importance it places on small business in Australia and has rewarded the sector with significant tax relief. On March 28 2009, the Australian government announced more than AUD720 million (SLR 23 billion) of cash-flow relief and further initiatives to support small business are expected in the May budget. Although the business world has been pessimistic about the impact of the global financial crisis, Australia has been better positioned than most countries to weather the storm. A survey conducted by the Small Business Development Corporation of small business sentiment in Western Australia has found that “there is more optimism within the small business sector than media reports would have us believe”, SBDC Managing Director Mr Stephen Moir said when the survey was released. This may make it a good time for potential business migrants to consider a move to Australia. Many business people from around the world have already taken advantage of the opportunities offered under Australia’s business migration programme. A total of 6565 business visas were granted in 2008, a 12.5% increase on the 2007 figure. This is about equal to the number of business visas that can be granted before July 2009 under the recently announced cap. New business visa applications are still being accepted and processed as normal and no limits have been announced for 2010. It is not clear what effect the global downturn will have on demand for these visas and whether the caps for 2009 will have an effect on processing times in the future. There would appear to be little reason for the Australian Government to place significant limits on the number of business visas in the future – business migrants create job opportunities in Australia rather than reduce them. Historically the Australian business visa programme has attracted mostly small to medium business people who are seeking better opportunities for themselves and their families in Australia. In recent years the program has attracted many applicants from countries such as the PRC, Indonesia and South Africa where there has been some political or economic instability and concern for the future. Australia’s business visa program is targeted at small business owners and senior managers who have a proven track-record of successful business in their country and who have accumulated wealth through their entrepreneurship, which can be invested in Australia. Successful business applicants need to show that their business has recorded sales of more than AUD$300,000 (LSR 27,000,000) in at least two of the past four fiscal years or that they are a senior manager in a significant business, and that they have at least AUD$250,000 (LSR 22,000,000) in personal and business assets which they are willing and able to transfer to Australia. Business migrants who are over 45 or who do not have a good command of English must be sponsored by a state or territory of Australia. Despite the global downturn, there are good business opportunities in Australia in many sectors and Australia remains very much open for business. In order to encourage business migrants to establish themselves in their area, some Australian states and territories, including Western Australia, offer incentives and assistance packages to qualifying new migrants and small business owners. Many states and territories offer discounted education for children of business migrants. A successful business visa applicant will first be granted a temporary visa for four years within which time they must relocate themselves and their families to Australia and establish their business in the sponsoring state. Provided the relevant requirements are satisfied during this time, the person can apply for a permanent visa allowing them and their family to remain in Australia indefinitely. After a time, business visa holder can apply for Australian Citizenship should they want Australian nationality. If you are thinking about migrating to Australia, the time might be now! Source  :  www.sundaytimes.lk

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Hike in Visa Application Charges from Next Month

Intending visa applicants should move quickly if they wish to avoid the significant increases in Australian Visa Application Charges that come into effect on the 1st of July, 2009.

The Federal Budget was handed down last month, and included in the various Budget papers is reference to increases of 20% in VACs applicable to visas granted under the skilled migration program and the family program.

For example, the main VAC for general skilled visas is presently A$2,105. Intending skilled migrants can therefore anticipate a saving of more than $400 if they can submit a valid visa application before the end of this month (June 2009).

Cost savings of a similar sum are likely to be available to applicants for Spouse visas, Remaining Relative visas, and Business Skills visas.

It should also be noted that the requirements for the lodgment of valid visa applications are generally limited to the submission of the relevant visa application form, payment of the Visa Application Charge, and any other DIAC form as is applicable to the visa that is being applied for – plus a skills assessment classification letter where one is applying for an offshore general skilled visa.

In other words, other documentation in support of the application can be submitted later – and (we suggest) should be if a saving of more than A$400 is available.

If you are intending to move to Australia and would like to lodge your visa application quickly in an effort to save money please contact us. Go Matilda has many years of experience assisting with Australian visa applications, and can prepare application paperwork quickly in an effort to lodge a valid application so that you lock into this year’s Visa Application Charges.

Source  :  www.gomatilda.com 

Author:

Alan Collett

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$3billion proposal to upgrade Perth Airport

Perth Airport is set for a $3 billion upgrade over the next 10 years to transform it into a transportation showpiece.    
The capital works program, from private and government sources, is the biggest ever for the airport.

In line there is  a $1 billion in terminal facilities, $525 million for road upgrades and $1.4 billion in hotels and multi-storey carparks. 
   
Terminal WA is set to be opened in 2011, and an integrated international and domestic terminal on the site of the existing international terminal to be phased in over the next seven years. 
  

 Perth Airport chief executive Brad Geatches said yesterday that the airport would become one of the best in the Asia-Pacific region. 
  

The master plan, which is available for public comment until August 10, outlines the airport’s plans through to 2019 and brings development forward 10 years.  
   
The  terminal upgrades, a new ring road and improvements to key intersections will be started over the next 12 months.

The escalators will be on the left of the building and will take departing passengers and the public upstairs. The existing facilities will be for arrivals only. 
   
Major funding has also been committed to upgrade the road network around the airport.

The Budget included more than $115 million in projected major intersection works along the Tonkin Highway interfacing with Perth Airport.

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Troy Buswell delivers $647m surplus to WA

WESTERN Australia’s Liberal Government has handed down its first Budget, delivering a $647 million surplus but warning the state will be in deficit by 2012.

Treasurer Troy Buswell today delivered his first Budget since the Liberal Government came to power last year.

He said the 2008/09 surplus of $647 million would shrink to $409 million in 2009/10, and just $23 million the following year.

By 2011/12 the state will be in deficit to the tune of $513 million.

“Over the past months, as the global economy has been in decline, the state has been hit by large downward revisions to projected taxation revenue, GST grants from the Commonwealth and mining royalties,” Mr Buswell told parliament.

“Since the mid-year review, the Budget has lost a massive $4 billion in forecast revenue from these sources.”

Last year, then treasurer Eric Ripper delivered a surplus of more than $2 billion on the back of a booming commodities sector.

Economic growth remained high at 8 per cent for the 2008/09 financial year.

But forecasts predicted growth would fall into negative territory in 2009/10, with unemployment expected to peak, and business investment to fall by 17.5 per cent.

Mr Buswell said the Government would provide a one-year payroll tax rebate to small businesses with payrolls of up to $3.2 million to help protect jobs.

“Some 6,700 small businesses will be eligible for this payroll tax rebate, which will fully offset payroll tax for around 68,000 employees,” he said.

“The cost of this rebate is estimated at $100 million.”

A $47 million jobs training and skills package, and a $8.3 billion spend on infrastructure in the next financial year are key components of the Budget.
Mr Buswell said law and order were also strong focuses, in line with the Government’s election promises to boost funding for police and pump more money into prisons

Mr Buswell said the Government’s election promise to toughen up sentencing laws and introduce mandatory sentencing for people who assault police was underpinned in the Budget by a significant investment in prison capacity.

 

A total of $655 million will be invested in 2012/13 to create an extra 1657 prison beds across the state.

A record $5.1 billion spend on health services in the next year – rising 5.9 per cent, or $282 million from last year – will include the fast tracking of forward works for a new children’s hospital, the construction stage of the Fiona Stanley Hospital, and new hospitals in two regional centres.

Mr Buswell said the Government would push ahead with public sector reforms in a bid to achieve improved performance and efficiency.

The first stage of the economic audit committee promised by the Government during the last election was complete and a range of hard decisions had delivered $7.6 billion over the forward estimates, Mr Buswell said.

“I am looking forward to the second stage of the economic audit to identify strategies for broader reform over the longer term, so we can ensure the budget stays in surplus,” he said.

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Budget ‘could spark multiple birth spike’

Fertility doctors are worried they will be under pressure to implant multiple embryos into women who cannot afford ongoing treatment due to new financial safety net caps, a leading IVF specialist says

Having two embryos implanted into the uterus instead of one raises a woman’s chance of having a multiple birth, says IVF Australia chairman Professor Michael Chapman.

As part of Medicare Safety Net restrictions unveiled in Tuesday’s budget, payments for IVF will be capped at different rates for each stage of treatment once a person reaches the safety net threshold for out-of-pocket medical expenses, which is $1,111.60, or $555.70 for those on low incomes.
This could hit women with an extra $1,500 to $2,000 of out-of-pocket costs per IVF cycle.

There are also caps on safety net payments in other areas including obstetrics, varicose vein and cataract surgery.                                                       

Under the changes, pregnant women who choose to see a private obstetrician will be out of pocket by $550 unless doctors lower their fees.

“That is why the government is urging women to question their doctors about their fees,” Health Minister Nicola Roxon said.

An average of $4.5 million of taxpayers’ money is paid to the top 10 per cent of IVF specialists each year.

But Prof Chapman said the government, which says it wants to crack down on specialists who charge exorbitant fees, was using the figures for political gain.

“For every doctor that gets money, there are 10 staff members, the scientists, counsellors and nurses, they get funded through the rebate,” he told AAP.

Prof Chapman said he accepted there had been a 40 per cent rise in IVF fees over the past five years but said that it was in line with general medical inflation.

Current Medicare rebates, which work out to about $4,200 per child, go towards employing about 2,000 people in private IVF clinics nationally and investing in research and facilities, Prof Chapman said.

He estimated out-of-pocket costs for patients would rise from $1,600 to between $3,000 and $3,500 when the safety net caps come into effect on July 1, 2010.

It can often take more than one IVF cycle for a woman to fall pregnant.

“Certainly, patients are going to be more out of pocket for IVF than they have been in the past,” Prof Chapman said.

He warned doctors would be under pressure to implant more than one embryo per cycle into women as a result of safety net restrictions, increasing the chance of multiple births.

“Over the last five years in Australia the twin rate has dropped dramatically because we have been able to put one embryo back,” he said.

“But if patients think they won’t be able to afford the next cycle they will put a lot of pressure on the doctor to put two embryos back.”

Ms Roxon said her department would work with medical professionals to restructure the system to better reflect stages in a treatment cycle.
www.sbs.com.au

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It’s Barnett the Builder

Job creation and capital works projects will form the cornerstone of this year’s state budget, West Australian Premier Colin Barnett says. 

The WA government on Thursday will deliver its first budget since elected last year.

“It will be responsible and I think you will see it supports maintaining  jobs and supports the future development of this state,” Mr Barnett said on Wednesday.

“And you will see not only that, but a number of measures designed to maintain jobs, particularly in the small- to medium-size business sector.”

The government is under pressure to maintain a surplus after Mr Barnett’s commitment to deliver surpluses in the next two budgets.

While seeking to maintain the state’s AAA credit rating, the government is also facing demands from WA’s peak business lobby to deliver on an election promise to cut taxes by $250 million.

Mr Barnett said the state’s budget and finances would need some “rejigging” to match a $263 million federal government commitment in Wednesday’s federal budget to put the Perth rail line and bus station underground.

“Yes, we will have to have some rejigging of the state budget and finances because we originally sought 50/50 funding just to sink the rail line,” Mr Barnett said.

“The commonwealth’s taken up the point. It was an issue I discussed with the prime minister in Perth about three weeks ago and I just made the point to him quite informally that if we’re going to sink the rail line it would actually be commonsense to sink the bus station too …

“He’s obviously taken it on board so we’re going to make sure that happens.”

The federal government also pledged $339 million for a deepwater port at Oakajee, in the state’s midwest, which will boost iron ore exports in the region.

The WA government had already spent about $20 million on Oakajee and private proponents were now spending $100 million on the design of the deepwater port and rail line, he said. Continued…

www.watoday.com.au

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Budget may boost border security

Immigration Minister Chris Evans has hinted the budget will contain additional money to fight people smuggling.

The Rudd government has been criticised for relaxing Howard-era border protection measures.

The opposition says the recent influx of vessels is evidence of Labor’s failed policy.

Since the government abolished temporary protection visas last August, 19 boats carrying suspected asylum seekers have been intercepted in Australian waters.

“We are absolutely committed to maintaining strong border security measures and doing everything we can to attack the people smugglers and disrupt their operations,” Senator Evans told parliament on Tuesday.

The government’s commitment was absolute, he said.

“And that commitment will be reinforced again in tonight’s budget.”

Labor had already taken on additional measures since coming to government to strengthen border security and “more will be done,” Senator Evans said.

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