ALP Myths #1 Housing costs

Kevin Rudd is basing a fair amount of his campaign to get hold of the keys to the Treasury on very spurious data. The myth that has been taking my interest of late is his claim that the Howard Government are responsible for the high cost of housing. Some time back I was driving and listening to the ABC (old soldier tactic…know your enemy) and was interested in a discussion on housing costs. Callers were ringing in with some astounding facts. I registered their comments that, on the whole, laid the blame at the feet of local government. I could never accept that the Howard Government’s negative gearing and Capital Gains alone was responsible and of course the fact that the ALP are shouting ‘four interest rate rises under Howard‘ hardly matters considering how small these rates were when compared with Keating’s magnificent accomplishments. A letter in todays Australian brought all this to mind

WHILE I accept Mike Steketee’s arguments (“Tax the no-go zone in debate over housing”, Opinion 12/7) that negative gearing in its present form and capital gains tax have contributed to the high cost of housing, I am surprised that he did not mention the contribution of state governments and local councils to this situation. In an article in The Australian in March last year, it was reported that government charges in my shire, Redlands, in outer Brisbane, had risen 583 per cent in five years to $135,700. This has to be paid up front on top of the cost of the house and land. In Sydney’s north west, 35 per cent – or almost $200,000 of the price of a new home – was eaten up by government charges. The buyer of a typical Sydney house and land package would pay $1,455 a month over the life of a mortgage just to cover the taxes. The interest alone on these taxes would total $230,000. The naked greed of state Labor governments’ stamp duty grab contradicts their claims of representing the battler. I derive no pleasure from the vastly increased value of my home. In fact, I am deeply saddened how many children are waiting for their parents to die before they can buy a house. C.A. Bond Cleveland, Qld

State Governments, Councils and Shires are on a roll here. They have found a new milking cow that they will never let out of the yard. They must be standing around the dairy yards in a state of uncontrolled mirth as the media and the ALP sheet the blame home to Howard and away from the real culprits. Sting the punter and have someone else blamed – the perfect scam.