Figures from the Valuer General show in the month of February, only 2556 properties were settled in Adelaide. This is the lowest recorded figure since the department started keeping records two decades ago.
As the state government generates revenue from stamp duty on transacted properties, the slow down has forced the state Treasurer to slash more than $140 million of conveyancing revenue from the 2013-14 budget, with further downgrades on the cards likely.
Former Valuer General John Darley, now an Upper House Independent believes the market will be flat for the next five years, and this could create ongoing budget pressures. “My personal view is that this market is going to be flat for the next five years,”
But property revenues may not be the only concern for State Government budgets. They also share GST revenue collected by the Commonwealth and retailers are also experiencing some difficult times.
Data of Household Income Accounts from the ABS show the Household Net Savings ratio is at levels not seen in 25 years. This suggests consumers are in fact clawing back on non-essential discretionary spending, rather than moving all their sales on-line with an Aussie over parity as many brick and mortar retailers suggest. Something has scared consumers and with such a rapid change in household savings, this could suggest there is a lot more pain ahead in terms of retail spending (and GST collection.)
ยป Housing property sales dip eats into budget – Adelaide Advertiser, 4th April 2011.
This is just the start. More to come I am sure nation wide.
Where are all the greater fools? Are they all in?
Maybe they’ll raise the GST rate to compensate the leech from survivng off funds raised by the debt binge of this nation.
Wealth destruction is not pretty, it will have huge flow on effects. We kind of deserve what we get, as we live in this nation like spoilt little brats and expect everything on a platter. Maybe this will be a reality check for the Australian people.
Its been a long time coming.
Thanks for this great website, it shows we are not all stupid mass media followers that lack a brain.
LBS, you are certainly right. Even company tax is falling.
Company tax slump puts hole in Budget, Treasury warns
“TREASURY has warned the federal government that the river of company tax revenue that has supported the Budget for the past eight years is drying up, with payments falling massively short of budget projections.”
http://www.adelaidenow.com.au/money/interest-rates/company-tax-slump-puts-hole-in-budget/story-fn3hwpx0-1226033749577
Guys, you may consider joining these facebook campaigns
http://www.facebook.com/EndNegativeGearingTaxSubsidy
http://www.facebook.com/dontbuynow
We must have a viral social media campaign to raise awareness of these issue, since the MSM are useless.
Does anyone know whether debt repayment is included in household savings? Obviously this is a methodological problem as those savings aren’t actually savings at all, but rather a confirmation of Steve Keen’s opinion about debt increasing aggregate demand on the way up, then subtracting from it on the way down again
Debt repayment IS included in every definition of household savings. There are a number of different definitions of savings rate; some of them factor in things like capital depreciation, and some don’t. However, the root of it is that it’s the amount of income and assets left over after consumption costs are removed. Therefore, buying capital counts as saving. Paying down debt also counts as saving.