Ahead of the release of state budgets, our NSW and QLD Divisions held two huge events: lunch with Queensland Premier Hon David Crisafulli, and the NSW Housing Summit — both bringing together government leaders, industry innovators and an array of experts.
This morning marks the start of the National Retirement Living Summit (NRLS) – the most important annual gathering for the leaders of the retirement living sector.
NRLS is a timely reminder the sector is Australia’s strongest response to our greatest demographic challenge, the ageing of our population. Especially looking forward to taking the stage with Anna Bligh AC on Friday to talk leadership and good public policy.
Speaking of the opposite…
It is the time of the year for State Treasurer bingo. WA this Thursday. NSW, ACT and QLD next week. Play along at home with this list of claims. Warning – more fun in some states than others.
- “Our state’s growing debt has been a productive investment helping ordinary families.”
- “These mega projects are 100 per cent bangers.”
- “The CFMEU construction division has nuffink to do with lethal cost blow-outs.”
- “I am very serious about cutting (the growth in) government expenditure (subject to my focus groups and union pushback).”
- “Our debt is lower than the rest of the Country/Region/Globe (please politely ignore the one off rise of China and two commodity super cycles since the turn of the century).”
- “Shut up nerds! Debt doesn’t matter because people, in my recent focus group, don’t care/know about it.”
It is easy to be tongue in cheek.
Queensland Treasurer Janetzki, not to blame for where he starts on the slippery slope of debt, does a sound job explaining the gravity of the problem in his state.
The new QLD state government has $80bn to expend each year. Roughly $10bn goes straight up in flames – pure debt repayments. That is a now problem for the people of Queensland. Discarding one dollar in eight each year (noting a part of that will produce productive infrastructure assets). Again, did not happen on his watch.
Equally, Victoria’s rampant debt is a crown of humiliation for former leaders the Hon Dan Andrews and Tim Pallas. The state is not broke, but it is also carrying blow-out public service costs and 30-years-too-early mega projects as part of what will be $10bn in interest payments alone by the end of the decade. The disappointing political reality is these projects currently poll well on non-productivity measures – public transport and sustainability for example.
Many in the Victorian ALP know that schools, hospitals and paying down debt should be the priority as it would have been for former leaders Bracks and Brumby.
The only job left for fresh Treasurer Jaclyn Symes is deciding which part of the budget dumpster fire to point the hose at. Any other choices? Certainly, welcoming investment in by slowing the tax hokey-pokey – pausing foreign investor surcharges and freezing infrastructure contributions among others.
In Tasmania the shock poll/leadership ballot confirmed for 19 July has eclipsed the recent budget which showed an estimated operating deficit of almost $1.3 billion this year. While there was a welcomed $500,000 one off injection for the establishment of Development Assessment Panels, more can be done.
As our Tasmanian Executive Director Rebecca Ellston put it:
“Tasmania is facing a severe housing shortfall, and this budget does little to get us back on track.
“We need a budget that actively supports homebuilding in Tasmania. That means fewer financial roadblocks, smarter incentives for first homebuyers, and policies that make it more viable to invest in this state.”
Back on the mainland, South Australia released its Budget last Thursday fortnight.
Our South Australian Division has warned that further bold action is needed to address the property sector’s unfair tax burden.
The scale of the state’s residential, industrial and commercial requirements demands a more ambitious fiscal response.
Our South Australian Executive Director Bruce Djite laid out the issue:
“With demands on the built form rising and costs escalating, we need to rapidly see more levers pulled to drive supply, attract capital and create the jobs, economic opportunities and vibrant liveable communities we all seek to inhabit.
“Property continues to do the heavy lifting when it comes to funding public services and infrastructure, and such an astronomical contribution is simply not sustainable.”
Whilst this budget did little in terms of new announcements, Bruce and the team will be keeping an eye to pre-election commitments that support the industry and therefore, the South Australian economy more broadly.
Next week: The QLD budget and tax D-Day