Property market slump takes $585m chunk out of government coffers

  • 📰 theage
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 77%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Housing market slump and public sector wages bill have combined to cut more than half a billion dollars from state funds, budget update released on Friday says.

Victoria’s housing market slump and a burgeoning public sector wages bill have combined to take a $585 million bite out of state government coffers, a budget update released on Friday says.

The decrease in the Andrews government’s operating surplus was in large part due to a drop in revenue from stamp duty and rising public sector employee expenses. The government had previously forecast that a decrease in property sales would impact its budgetary position.as he flagged the possibility of limiting new annual wage increases of 2 per cent for public sector workers – some of whom are due to renegotiate workplace pay deals this year.Victoria’s public sector wages bill grew by $1 billion in the six months to December 31 last year, compared with the same six months in 2017-18, from $11.3 billion to $12.3 billion.

The government said the update showed the Victorian economy was well equipped to deal with future challenges, including a softening property market. Shadow treasurer Louise Staley said the economy was being weighed down by 12 new and increased taxes brought in by Labor. She also criticised the government's decision in November to double the state’s debt level from 6 per cent to 12 per cent of gross state product.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 8. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Poor Ponzi Pallas, he thought he was an economic genius not a dunce.

What Uncle Fester is saying.......next state budget more taxes and big cuts to public service because labor has had a four year spending splurge.

One certainty with the Andrews Govt. Public sector wages bill will always increase.

Bet it doesn’t stop them handing out tax cuts in the next budget 🙄

This will be their reason why stampduty stays. Gov needs the revenue.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

RBA research shows rate cuts inflated the property marketThe Reserve Bank research also cautions that long-term falls could, in the worst case, escalate into an American-sized drop in Australia's property market. Hordes of Chinese investors just waiting for a rate cut Why wouldn't it? I would have thought that the purpose of reducing interesting rates to increase economic activity. . Duh!
Source: smh - 🏆 6. / 80 Read more »

RBA research shows rate cuts inflated the property marketRBA economists find interest rate cuts drove up house prices Well gee ya dont say Obvious Am surprised the RBA did not factor negative gearing benefits along with the low cost of mortgages, and the extent to which a rise in investment properties places upward pressure on property prices.
Source: theage - 🏆 8. / 77 Read more »