ERROL PARKER | Editor-at-large | Contact
One key aspect of this impending budget is the tax cuts given to all Australians who earn over $45 000 – those who earn under that should expect no deviation from the path of eating shit and dying prematurely.
The more money you make, the more benefit you stand to make from this budget.
Which is curious, considering the fact that the nation’s most vulnerable and least-paid workers have been the most impacted by the coronavirus lockdown.
However, Josh Frydenberg explained this morning in Canberra that these huge tax cuts to the Australia’s most wealthy are aimed at kickstarting the fledgling exchange-traded fund (ETF) industry.
Since March, the share of the average share portfolio dedicated to ETFs had dropped dramatically as investors chase a quicker dollar.
Many companies experienced a V-shaped recovery, meaning those with the means to invest when the times were at their worst, have now made a significant amount of money.
Which is all good and well for the average investor, says Josh Frydenberg, but it leaves the ETF industry out to dry.
“These tax cuts to people who earn over $90 000 are aimed at freeing up money that could be put into a nice exchange-traded fund,” he said.
“When their is uncertainty or volatility, investors should turn to stocks and companies that aren’t WA-based magnesium prospectors or something to that effect. They should be turning to nice stable investments like a Vanguard or Betashare fund,”
“Investors abandoned them when the Covid Crunch hit, these tax cuts are aimed at getting them back to regular investing.”
One of those investors the Treasurer was referring to, spoke briefly to The Advocate today about what they plan to do with the thousands of extra dollars expected to be in the pocket by the end of the month.
Mikey Olive-Dupont, who is someone’s son, said he’s probably just going to spend it on new golf clubs.
The 25-year-old does something with a computer for a small company that makes things for computers and phones. When he’s not doing that, he’s either drinking with friends on the verandah of his parent’s lovely home in Betoota Grove – or he’s on the golf links.
“I’ve had my eye on these new TaylorMade blades,” said the 25-handicapper.
“Something my game might grow into. I don’t know. That’s what I’d like to spend this free money on. I might just save it. I moved home to save for a house deposit so it’d be pretty rich for me to just buy things I don’t really need but want,”
“Mind the pun, sorry. But yeah, to answer your question, I don’t really care.”
More to come.
