Mass immigration, soon to recommence no matter which party wins, also keeps wages down. No mention of this in the campaign.

As for Labor’s promise to push up wages in isolation, IPA economists say that would lead to:

" a 2.25 percentage point increase to inflation, taking inflation from the current rate of 5.1% to 7.36%;push mortgage rates up by 57 basis points, taking the average mortgage rate from the current rate of 4.52% to 5.05%;cost the average mortgage holder an extra $273.27 per month in higher mortgage payments, which is $3,279 per year; and push the average small business lending rate from 4.75% to 5.41%."

ttbn

So you agree with the experts in this instance, where on previous occasions you reviled against similar experts, when the argument was opposed to your desired outcomes, re COVID restrictions advised by medical experts.

It’s when experts get to rule, is the true problem, let’s keep focused.

A simple shifting round of taxation obligations could easily solve the problems of the impoverished renter classes, currently the most maligned financial group in our communities.

A system of franking credits given to corporate investors to reduce income tax obligations, could be applied to renters on low wages. This would greatly assist low paid workers without the need for Government handouts, such as rent assistance, which goes straight into the pocket of the landlord in increased (unregulated) rents.

Far better than wage increases designed to ameliorate the increasing cost of living. It’s already in some States a given that fuel tax reductions be given towards lowering fuel prices. So Governments are willing to comply to necessity.

Regulating rents to a factor applicable to unimproved capital values, such as Councils factor your rates cost annually, would unhinge rents from unfair and unreasonable market fluctuations as the driving factor in rents. If it’s a good 3nough system for Councils to fleece you of rates, so it would be for renters to give them security of tenure and @void unpredictable rent rises forcing them from rented properties they call home.

Dan

DD, you need a landlord like my wife. She gave the Indian girl students 3 months free rent in our flat in Sydney during Covid. She wasn't asking for pay back, now they have moved out. The agent said she was crazy to do that, but she felt sorry for them, $4600 sorry.

Unfortunately, there is a real risk that Tristan will get what he hopes for, and the wage share of GDP could rise sharply in the next few years.

Historically, periods when the wage share has risen significantly in relatively short periods have been times when the profit share has fallen sharply; which is almost always caused by, or a cause of, recession. So the post-war peak in the wages share was in 1975, when the economy was a stagflation-riddled basket case afflicted with the (then) highest unemployment rate since WW2. This is hardly a benchmark to aspire to.

The level or direction of the wage share is a virtually meaningless measure of the wellbeing of workers or the fairness of the economy. It is influenced by economic structure, levels of development, capital intensity, taxation, government spending, capital deepening, technological change and a host of other factors. For example, one of the most spectacular drops in the wage share of a modern advanced economy occurred in Ireland between 2014 and 2015, when the labour share of GVA dropped from 47% to 36%. This was because changes in the tax system saw a large number of global companies relocate their European headquarters to Ireland and declare their profits there, resulting in a large jump in nominal GDP. This probably had little effect on average Irish workers, and if anything the extra economic activity and taxes would have benefitted them. But by Tristan’s measure, this was a disaster for workers.

https://www.cso.ie/en/releasesandpublications/ep/p-pii/productivityinireland2018/gvaandthelabourshare/#:~:text=Prior%20to%202010%2C%20labour%20share,pre%2Drecession%20levels%20of%20growth.

There are many more useful and meaningful measures of workers’ economic well-being – growth in real average and median earnings, the earnings distribution; growth in compensation of employees, and broader measures such as real household disposable income.

Dan, franking credits are what you get from owned shares! And if you are wealthy enough to own shares and therefore earn dividends along with the aforementioned franking credits? It's hardly likely that you are one of the working poor!

If you want downward pressure on house prices then we need to seriously ramp up the supply side.

One way would be to force state governments to rezone more urban land! And could be down by withholding their share of the GST until they complied and removed stamp duty and all other front loaded taxes.

Another, to build rapid rail and rezone huge swathes of rail-side land. Another to limit negative gearing to brand new build only and then limit it to 5 or 6 per investor! Another, to outlaw foreign investment in the real estate market by non resident investors and do so retrospectively.

The latter investment practice, is what crueled the Celtic economic miracle! And the last thing we need here!
Alan B.