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Australia To Start Taxing Bank Deposits
Up until now, the world's descent into the NIRPy twilight of fiat currency was a function of failing monetary policy around the globe as central bank after desperate central bank implemented negative and even more negative (in the case of Denmark some four times rapid succession) rates, hoping to make saving so prohibitive consumers would have no choice but to spend the fruits of their labor, or better yet, take out massive loans which they would never be able to repay. However, nobody said it was only central banks who could be the executioners of the world's saver class: governments are perfectly capable too. Such as Australia's.
According to Australia's ABC News, the "Federal Government looks set to introduce a tax on bank deposits in the May budget."
Ironically, the idea of a bank deposit tax was raised by Labor in 2013 and was criticized by Tony Abbott at the time. Much has changed in two years, and as ABC reports, assistant Treasurer Josh Frydenberg has indicated an announcement on the new tax could be made before the budget.
Mr Frydenberg is a member of the Government's Expenditure Review Committee but has refused to provide any details.
"Any announcements or decisions around this proposed policy which we discussed at the last election will be made in the lead up or on budget night," he said.
Speaking at the Victorian Liberal State Council meeting Mr Abbott has repeated his budget message, focusing on families and small businesses.
"There will be tough decisions in this year's budget as there must be, but there will also be good news."
For the banks and creditors, yes. For anyone who is still naive enough to save money in the hopes of deferring purchases for the future, not so much.
The banking industry has raised concerns about a deposit tax, saying it will have to pass the cost back onto customers.
Steven Munchenberg from the Australian Bankers' Association said it would be a damaging move for the Government.
"It's going to make it harder for banks to raise deposits which are an important way of funding banks. And therefore for us to fund the economy," he said. "And we also oppose it because particularly at this point in time with low interest rates a lot of people who are relying on their savings for their incomes are already seeing very low returns and this will actually mean they get even less money."
Don't worry Steven, neither central banks nor government care about "a lot of people" - they just care about a select few. As for the banks, once China, and immediately thereafter Australia, launches QE as the entire world descends into a monetary supernova, and Australia's banks are flooded with trillions in excess reserves like those in the US, all shall be forgiven. As a reminder, banks such as JPM are so flush with zero-cost cash from other sources, well one other source, they are now actively turning away depositors.
As for Australia, while central banks are untouchable and unaccountable to anyone (except their commercial bank directors and anyone else they secretly meet during those bimonthly sessions in the BIS tower in Basel), the government can be voted in and voted out. Especially a government that is about to break one of its main election promises:
The Federal Opposition has accused the Government of breaking an election promise by planning to introduce a tax on bank deposits.
The former Labor Government put forward the policy in 2013 to raise revenue for a fund to protect customers in the event of a banking collapse.
Shadow Assistant Treasurer Andrew Leigh said Treasurer Joe Hockey criticised the proposal at the time. "When we put it on the table Joe Hockey said that it was a smash and grab on Australian households just aimed at repairing the budget," he said.
It is almost surprising, but not really, how when it comes down to money, the thin white line between "us" and "them" always disappears when the money runs out.
As for Australia's savers, welcome to the NIRP world where savers in increasingly more countries are now on the endangered species list.
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Thanks for the articulate, reasoned response.
I have no idea what a "Lubra's loincloth" smells like but accept your authority on the matter.
LOL !!!
So you're gay and definitely not Aussie. Good to know.
And who are you, who are so shite in the ways of knowledge?
Enlighten me.
"runs every piece of harmful speculation it can imagine in an attempt to damage the current conservative government."
Oh but Tony and crew don't need any help at all when it comes to damaging their own crediblilty.
#keeptonyforthelolz
I lived in Australia for two years. Yes they're sports crazy but pretty decent people. But aren't we already paying fees on savings accounts. I pay about $6 bucks a month plus every time you use an ATM. I definitely pay more out than I receive in interest.
If you are paying $6 every time you are using an ATM in Australia, you are an idiot.
Having said that, even since the GFC, the Big Four, Australian banks, Commonwealth Bank, NAB, ANZ and Westpac have been making multi-billion dollar annual profits.
http://www.theguardian.com/business/grogonomics/2014/nov/06/big-four-banks-profits-soar-but-dont-expect-any-gratitude-for-taxpayer-help
Does anybody notice..that no matter how fucked up tbings seem to get..nobody seems to care? Its almost like you cldnt write this shit. And who cares?
600 people registered on ZH..who btw.aar too busy commenting on ZH to ever be able to do anything. .even if they could/would, without being killed?...?...
Fuck it. Ill just sit here and read the doomsday articles like eryone else...
Grab the popcorn ma.
This shit is sooo outa control..people cant even believe it...even if they did give a shit.
Plan seems to be unfolding perfectly.
FUCK.
@stupidearthlings....
I totally agree with your view...
I myself am aware of the shit storm over the horizon and I DO TREAT IT LIKE A DIFFERENT FORM OF ENTERTAINMENT...
Most peple I encounter have NO CLUE about the bigger picture and quite frankly, they dont give a fuck! I speak with folks in their early 20's up to 50's and they are clueless.
As for myself (50) I see no meaningful future for myself, nothings' gonna get better, I barely scrape by on a 2 day a week dishwashing job, so I say, WHATEVER! Que sera, sera! I enjoy each day like its my last and I savour the freedoms I have today, that will surely disappear tomorrow (or soon therafter).
I Think ZH could get a lot more readers if they did away with the 50% face covering advertisements ( yes i block ) but the new users don't
surely there are better ways to get revenue than polish dancing strip monkeys.. I refer people to this site for the Comments ( not articles ) and they all get blown away by the tacky advertisements
One way to start killing off Australian banks.
Just deposit your money outside the country.
Take all your funds out of the banking system.
Their essentually telling you they don't want your money.
Take all your funds out of the banking system.
Its high time we start our own banking system...
It's a trip, we would have to trust each other, vs. them. This centralized stuff will default to local. It isn't even an idea. Collapse will make it inevitable.
You got any newbie ranch hands signed up for this summer? We are starting to think about chickens a little bit. The logistics look like more than I want to take on but my husband is really interested.
Chickens are easy. Same for rabbits, but you don't get eggs from rabbits. Yeah, I know the biological ramifications but we're talking food here.
As tarabe states chickens are easy and a hoot to boot. Start with 4 or so and enjoy !!!
Australia can track your deposits globally through GATCA. No trusts no nothing, straight to the beneficial owners. So eventually in the in the interests of "social justice" you can expect foreign deposits to be taxed even more. If you want to bite them cash your account and take it home. See how they like that. I suspect a major push for all out electronic transactions and abolition of paper money is just around the corner.
What about everyone has a business and funnel everything through that. Business owns everything.
Become like a TBTF bank...
Where?
:-/
Hey central bank of Oz I have THIS for you to consider.
Next step is for the banks just to take the accounts.
Negative rates are the start.
Get your money out of these banks before it's too late.
"And...it's gone!"
Australia needs to pay USA for those F-35 planes they ordered a long time ago and never got but the money has to be there so the poor slob in the street is on the hook for it.
They should have known that an F-35 doesnt have big enough gas tanks to Fly to Australia !!!
iT DON'T FLY fOOL!
Every F-35 will feature a Mowhawk and portable welding kit.
Why not tax unrealized gains in the stock market? While you are at it?
The IRS taxes Americans on the "imputed interest earned" on zero coupon bonds when no cash is transferred, so taxing "unrealized gains" is not so farfetched, unfortunately.
they already do that
This is an amazing time to be living through. I just wish I could come back in the future and read how they report it in the history books. I can only imagine...."they were taxing their savings..yet they kept making deposits"
How was it possible they thought they could actually ever pay that much debt back?" "Their elected leaders blatantly lied to them and yet were reelected" "They sought to disarm their citizens while arming every swinging d_ck overseas including giving the Big N to a country shouting for their death". "They worried more about a .00001% change in temperature and that some computer algorithm predicting disaster in a hundred years then the fact that tanks were rolling in Europe and the Middle East and the generation with real World War experience was almost all dead". It can go on and on, but then hindsight is 20/20.
I always ask people who think that money in the bank is safe, if they have been to the Louvre, or any other world famous museum, depending upon which one they might be most likely to recognize the name of.
When they inevitably say "yes".......I ask them if they saw the fiat currency exhibit.
As they stand there dumbfounded, I explain that they should go and look for it, for none exists anywhere.............yet there are several museums with 3,000 year old objects made of gold and silver that are locked behind secure shatter proof glass in alarmed boxes, and in some cases, with armed guards nearby.
Funny 'dat.
The money that goes into my bank was taxed already.
The day they pull that shit here is when I stick the money in a safe. I only keep a checking account for direct deposit and paying bills and a savings account in the same bank. I will close.the savings, but the checking is a necessity for now.
Be safe.
Their security (the banking system) is an illusion they want us to buy so that they can do as they please with us, at will. We are not vulnerable if we do not play.
I keep a little in there for bills. Comes and goes every month. I am not devastated if I lose it.
GIVE THEM NOTHING. BELIEVE NOTHING. THEY DESERVE OUR DISILLUSIONMENT AND DISBELIEF.
This is not paranoia, this is appropriate contempt.
The interest one earns on their savings is ALSO taxed at the same rate as their income tax.
The total interest paid in 2014 on my interest bearing checking account was $1.27. Really. Was sure to enter this grand sum on my US tax return.
Don't be concerned about the tax rate on Savings interest. There isn't any interest paid on savings.
Australia is going to lose over 10% of gen x and y to drug addiction and crime, it has begun, when there is no hope, hope fails..
Most of gen x has not realized they have been sacrificed to lifetime debt and forced into a job they dont want from 9-5 just to pay bills and eat food, once that ligh goes on things will get lol worthy, when they figure out they will have to do slave labour for some multinational corp for the best years they have then live on under 30$ a day until 75 heads will roll.
Greedy cunts!!! All is good in the land of the lost.
Oh as for this new tax, its a great idea and yes I am serious, until those with coin decide to store value in other assets, like hookers and blow.
As a gen Xer the moment was confirmed in 2010 for me. Didn't realize we went Banana Republic while I slept
Is it no longer possible to be self-employed in Oz?
Or does the "education" system no longer provide the necessaries to think for yourself?
You can be self employed, but you absolutely cannot exist outside the taxation system, because otherwise people kick up a stink about "not paying their fair share".
True story: In September last year, there was an article in the city newspaper about "backyard hairdressers" - women (and rarely men) who had set up their own hairdressing business at home, or made it mobile, and were charging less than those hairdressers in malls (where rent is STUPIDLY high). The mall-bound hairdressers cried and cried about it, and the Australian Taxation Office stepped in and wanted to stamp out such "cash economy" dealings.
This proves, at minimum, two things: People are fucking stupid for wanting the ATO to step in and deal with this, rather than looking at the bigger picture, and if someone is doing something that isn't inline with the masses, they'll be cut down pretty quickly.
Here's the article in question: http://www.theherald.com.au/story/2559080/hairdressers-builders-in-cash-...
Don't read the comments - they'll do your head in.
The use of "ice" (methamphetamine), particularly in the semi-rural areas and country towns of Australia has become rife.
At this point. Mr. Keen's head pops.
Wow..this is the most incredibly bullish gold and silver policy I have ever seen.
For physical ... paper is still controlled by FED and Central Banks
when will people start to say ,,,,"Enough"
fucking parasites
when will people start to say ,,,,"Enough"
fucking parasites
Since the Liberal Party Government was in power under John Howard (March 1996 – 3 December 2007) both major sides of Australian politics have had the attention span of a goldfish and the foresight of a junkie.
I'd go so far as to say that's still the case now - just look at programs like Q&A and Insiders on ABC. The political rumblings are intrinsically linked to the media cycles, and while people are still getting their Centrelink "pay" or they're earning JUST enough to cover rent, food and their phone bill, they'll be happy.
What will they do next? Ban Cash?
Are Australians men or sheep?
I don't know but their women bleat when banged from the back.
In Australia, men are men and sheep are scared.
That's New Zealand dipshit.
From what I saw, they are pretty sheep like and very socialistic. Give them an exotic animal, all the critical thinking thrown out of the window.
these douches in charge of the gov, dont have control of the senate. they will bleet and blab all year until something changes. but getting anything past the senate isnt going to hapen for them this term ie, a perfect form of gov.
so you keep money in a bank and they charge you between a negative interest rate and bank fees say 2% or 20,000 per $ million
if you put it in non cash flow real estate - in Jersey or LI per million you are more than $20,000 maybe $25,000 for property taxes - so if you buy real estate - the low end / middle/ upper end will or may not appreciate at all - the very high end may - because those people are getting wage increases but even - they - are a shrinking pool - so you have risk of asset value coupled with the house being outmoded, dated, needs whatever update all of which impacts value
this says the holding cost of high end non-earning suburban real estate is going up and seriously in jepardy given all other RE will not be able to chin the bar on paying property taxes - only solution is to cut off public schools (make them private) and cops (protect your own house).
Older property owners with any attack on SS & Medicare coupled with marginal earnings on bonds etc will mean a sale is necessary - they cant hold the property - massive liquidations
The game coming up is very serious
they have destroyed the free cash flow of the populace for even those near the top 9%since their business (cash flow and value) depends on consumers who wont have discretionary income - means implosion if no volume - cant make it up in margin
Barrack Hussein Obama and Greenspan fucked this up royally!
It's amazing what you can pull over your citizens when you take away their guns.
It will happen here also. This is a 'perfect' NIRP solution get the money out of the banks, into loans, and still feed the .gov pig. Life is going to get harder and harder
Really, I guess yr another stupid yank. You will all be using your guns on each other very soon you fucktard rather than on your government. Im in australia and have a gun and licence. With a population of very low gun owners give me a huge advantage when the SHTF. Save the world from dumb yanks.
Sexism, ageism, racism, religonism, cool, I got a new one thanks to you (really one of the oldest ones I just forgot)-- nationalism!
My banker infested country is better than your banker infested country. Nanny, nanny, boo and boo, even!
Let's all set to rending each other's flesh. Our banker and corporatist masters would be so pleased.
The good news for me is that not only are you in OZ but according to your bio you and your awesome wife "don't have or want fucking kids". Since your bloodline will thus thankfully die out - why don't you use 2 of your bullets on yourselves and save time.
"dumb yanks"? - go fuk yourself
I was at a Gun show in PA, this weekend, the crowd was standing outside the door waiting to get in and i thought to myself God that looks like whole army standing there.
As said above, that's why so many Asians keep their money in cash and gold and very hidden. Now I understand why the Paki's I know have almost no money in their bank accounts and use cash all the time.
Their cultures have centuries of experience.
https://en.wikipedia.org/wiki/Hawala
Why waste time - tax deposits at 100%
All of you old school ZHer's know me by now. You know I stack PMs but I feel like playing the game. I'll throw 10K into it for shits and giggles. My question is is who the best to deal with to set up an account with? Scotttrade, Etrade, FuckYou trade? I really do not know. I know that I should just keep stacking but there is so much downside potential here that even a gold bug can't resist the temptation. I kind of want to play the forex on the Russian Ruble vs USD. I do not know for sure but I think I should buy a shit ton of Russian rubles.
What do you all think?
Im going with Aussie gold miners med to small Pros-cheaper oil, low soverien risk, hi skill base sitting on sidelines, Beatin down gold stocks and being the worlds no 2 producer, The powers that be need to get there gold from somewhere. Gold price can not go below production costs.
I totally agree with that statment about production costs. I am not commited to doing this per se. I should probably just throw 10K at physical MOAR silver bullion and let ride. 10k is a big chunk of change for me. I would hate to fuck up.
as for brokers - you may be interested in reading some of this, and then decide. There are some true ECN from Australia, no less, but I don't want to give any advice.
http://www.forexfactory.com/forumdisplay.php?f=74
http://www.forexpeacearmy.com/public/forex_broker_reviews
"We're doing it for the children."
"We're doing it xxx to the children."
FIFY.
Jesus Christ! Enough is fucking enough. When are the pussy sheep going to rise up and impale these mother fuckers??!! Seriosulsy!! God fucking damn it, is the world too drugged and sedated to fight??
Are you kidding me?
Australian's are a bunch of comfortably off sheeple, willingly distracted by the mainstream media and sport of their choice.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobs-review.com
You've been blowing winter for 9 weeks now. Impressive. That is a whole lot of suck
Good luck. It is not the end user, borrowers, who will foot the bill. Looking back to history the same procedure of killing the goose, who lays golden eggs won´t produce a favourable outcome.
Bullshit. This will Drive Small Banks out of Business. This has to be a Goal. Check FRED Link: US Commercial Banks are Declining in a Steep, Steady Line from long ago.
"It's going to make it harder for banks to raise deposits which are an important way of funding banks. And therefore for us to fund the economy,"
http://research.stlouisfed.org/fred2/series/USNUM (total Banks)
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Josh Frydenberg is he like US Ivy League or What?
Frydenberg studied law and economics at Monash University, earning honours in both degrees, before working at Mallesons Stephen Jaques, a large Australian commercial law firm. He attended the University of Oxford on a Commonwealth scholarship, where he attained a Master of International Relations degree in 1998 and was a student at University College. He also attained the degree of Master of Public Administration at Harvard University's Kennedy School of Government.[2]
Harvard & Oxford. Yes, he is Ivy League Just a typical Lawyer.
Mr. Frydenberg Refused to Provide any Details... Al La Neocon/Neoliberal Style... Clearly we are in an Anglo-English Treaty or Colony Ruled by the Bankers of George the III.
I just saw a Sports T-Shirt that said "Ivy Envy". That about cracks it.
Anyway: We lost 5,000 Banks since 1985 in steady decline.
We the people aren't thinking right.
I was going to counterfeit IRS and CIA ids.
Just think, you can go anywhere in America with an IRS id and come home with cash in your pocket after you scare the hell out of the locals.
When you get enough cash, then it is time to take out your CIA id and go for a trip. With that id you can have all the hookers and drugs you want and the cartels will pay for it as they respect the way the CIA operates, it is modeled very closely to their own businesses and they even have coercion and torture down to a T.
No one will think your identification isn't authentic and everyone knows the IRS and CIA always deny everything, including the people who really work for them.
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I keep a bunch of folders in my browser for bookmarks and faithfully put all my ZH articles that matter into their respective folders.
I've been doing this for years now.
This was one of articles that matter. It's a canary in the coal mine.
Endgame.
Lines We Never Thought We'd Cross
Closing The Gates Behind Us.
Each one of those folders received a link to this article.
When is it going to be the time, to start thinking about the time, that it'll be the time to start pushing back, hard?
And how hard will you push back?
At some point, the curtain's gonna drop and they're just going to come and take it.
Then, I guess we'll just have to get the guns, if we haven't had those taken from us already, eh?
•?•
V-V
Relax, this whole story is politically motivated bullshit. If you did not watch Parliament Question Time last week you wouldn't know why ABC are now beating this up with rumor and their usual contrived fake 'news' BS.
Last week Abbott tore strips off the Opposition, due to the Rudd-Gillard Labor government literally steeling about $500 million AUD out of Australian bank Accounts which had not been accessed for several years. So the socialist government basically declared it 'lost property', and confiscated all of it and people's life savings disappeared into state revenue.
Government grab for inactive bank accounts - 27th Feb 2013
All occurring before the present Govt came to office.
And then the present Government gave back that money to the people that it was stolen from just two weeks ago! Plus they promised to protect all Australian Bank accounts from future (socialist) government thefts of "other people's money".
Get it? Pathetic, isn't it? But the Australian Labor Party are in fact a bunch of bushrangers in suits, saying, "Stand and Deliver!", your bank account's contents.
So, the radical left-wing infested ABC is now trying to deflect from the Labor party's pain, via contriving a rumor about the budget, simply to blacken the Liberal Party, which is actually doing the right an just and proper thing to the people.
Read:
Government gives back your money - 18th Mar 2015, Kaye Fallick
So they even stole children's savings accounts, with this new 'three-year rule'!
All the rest from the ABC is pure bullshit. Never just accept crap coming from the ABC, they constantly pervert the facts and make shit up.
There is no way that Abbot will allow his Govt to tax bank accounts given that stance, given just days ago on the floor of parliament, to prevent all future Governments raiding bank accounts in that way. If he did take money out of bank accounts of everyone after that, as 'tax' on savings, it would be political suicide.
It's not this government that Australia has to worry about, it's the next Labor governement that is certain to steal private property hand over fist, and demand a vig on bank accounts.
Good news! Your money is now safe from government hands for longer - March 18, 2015, By Starts
So I'm quite confident this rumor-making by the nutcase Gay-Greenie-Socialist ABC, who totally hate Abbot's guts and love taking taxpayers money every budget, to produce warped shit TV, is fabricated political shit-stirring nonsense, to deflect from the pain of the Labor Party.
Until proven otherwise.
Damn Skippy!
Bitcoin and physical gold holders are not affected.
In Hungary, where the .gov is an expert at shearing the sheeple, there is a financial tansactions tax -- not just on deposits but on all financial transactions; DEPOSITS, WITHDRAWALS, TRANSFERS, FOREIGN EXCHANGE, you name it. The tax rate increases every year. This is on top of the 27% value-added (sales) tax and the myriad excise taxes on everything from solar panels to bars of soap. There are so many taxes that one cannot keep up. Businesses small and large must pay a "commercial pursuits tax" and there is a mandatory membership in the local Chamber of Commerce: another tax, no value received. Sin taxes and gasoline tax are among the highest in the world.
Any bets on how long the Hungarian economy can keep muddling along?
According to The Age, its 0.05% so 50c per A$1000. Yawn.
...slippery slope ...camel's nose under the tent ...moment of inertia ...newton's first law... YIPES!
There were a lot of yawns when the 'Patriot Act' was signed into law also
That is not the point.
Trigger pulled and the bullet is only 0.05% out of the barrel.
Who pulls the trigger and what are they aiming for?
Please advise
I am new to this.
I was in Oz during the late 90's,the Tory Gov't sold off a third of the gold stockpile,some bullshit about storage and security costs.I think it was around $350/oz or so about then.The interest rates were about 20% in the early 80's,which reflected the true weakness of the global system,and risk was being priced accordingly. Now we have global ZIRP and NIRP and the price of gold,which has been manipulated and suppressed,will rocket to $3500/oz at least.It is obvious now to everyone that the system has rehypothecated all real assets to infinity.The 500 ton elephant at the party is this: The Aussies and Kiwis have bet the farm on the Yanks being there for them if the (when the) SHTF bigtime. This may be closer than most people think with Japan going down the chute fast.
Oz is a bit like Texas or Oklahoma,sort of a Boom-Bust economy.Problem is the same everywhere else: when the economy overheats and inflation starts,the Reserve Bank should raise rates to cool things off before wage demands kick in. If they raise rates then all the defaults and bankruptcies are laid at the door of the mob in power.
Oz has hitched its wagon to China in a big way,iron ore,copper,Nat Gas,etc.
When China catches the sniffles,Australia get a heart attack....
The old saying of putting cash under the mattress is actually right.
And one currency to rule them.
I just can't remember wth Frodo's number is. I know he had to move out of The Shire; they broke it up and sold the place for condos.
Good way of scaring off forgein cash and decreasing bank liquidity.
That should give bitcoin a bump.
and let the bank runs begin.
What's next? Employees paying Employers to work?......
The tax is on the BANKS, not the depositor.
Tax the bank.
Simplez.
It will become another 'boomerang' tax that can be claimed back under Ozzie tax rules when the average digger gets an ABN number and becomes a 'sole trader', further complicating the whole issue.
With a population of only 25 Million on a massively rich landmass, Oz could again re-write history and get it right before the logistics get out of control.
I fear it won't.
Gold. No counter-party risk. Difficult to tax.
More and more reason to not keep money in a bank. What a racket.
They report you as a criminal if you try to take "too much" cash out. So what choice do you have?
"Federal Government looks set to introduce a tax on bank deposits in the May budget."
Moar progressive utopia! Well, you idiot progressive assclowns own this shit man. Lots of you here posting your bullshit trying desperately to cover up the fact you are progressive.
Progressives=Moar criminals in government stealing and murdering!
Embrace your progressive suck motherf**kers! Cheer for it! Tingles up and down your legs-more psychopaths in government stealing from you yeah!
I see the ZH progressive assclowns standing around scratching their heads wondering why the stupid, it burns! Hurry quick, blame the neocons, that always works right? Ha Ha!
Grimaldus