Superannuants can increase their pension account by between $100,000 and $360,000 under changes to the Total Balance Cap from July 1. How to make the most of new thresholds, tax offsets and co-contributions.
New research asking people aged 55-plus their perceptions on how they’re viewed by the younger generations found widely held but simplistic views about attitudes, capabilities and finances, highlighting why it’s ridiculous to make assumptions based on age.
Wealthy investors not driving property prices
Surging home property prices, that have moved property to unaffordable levels partly due to decades of falling interest rates, are often blamed on the wealthy property investors who drive prices higher. But this myth has now been busted.
According to BMT Tax Depreciation, Australia’s leading supplier of tax depreciation schedules, investors are not the driving force behind property price rises. Data analysed by the firm of more than 800,000 investment property schedules found that the average property price in the December quarter 2021 was $751,800.
The Australia Bureau of Statistics (ABS) says it is $920,100 for the December 2021 quarter.
The value is well below the reported ABS figure, which challenges the view that wealthy property investors are responsible for price rises. Bradley Beer, chief executive officer of BMT, said “We know from both our own data, and data from the ATO, that property investors are mostly ‘Mum and Dad’ type investors with one investment property. They are typical Aussies using investment properties to boost their retirement nest eggs.”
The common theory is that generous tax depreciation incentives is the driving force behind investors purchasing investment properties. But this theory was dismissed after recent ATO data showed that 74% of investment property owners earn less than $100,000.
The theory that most property investors are affluent and wealthy is nonsense.
Beer concludes by saying, “Private Mum and Dad investors fund the majority of affordable rental housing in Australia. With a looming rental crisis in many regions and a shortage of affordable housing and rentals, government should concentrate on increasing supply of housing and be careful of making changes to negative gearing and other incentives available to property investors.”
