A great article by Michael Pascoe in the Sydney Morning Herald explains how the fad to minimise Australia’s population growth immediately threatens to increase inflation and, therefore, interest rates.
It's worth reading the article by clicking here.

In it he says that with another 45,900 jobs created last month, resulting in 11.1 million Australians in work and the unemployment rate at 5.1 per cent seasonally adjusted, there’s already a shortage of skills in key areas and a looming shortage of labor in general that will have the Reserve Bank’s monetary policy finger itching before the year is out.

Cutting immigration would exacerbate the “two-speed economy” effect, damaging non-resources businesses. In the medium term, the tax implications become quite nasty and in the longer term one can wonder about a backwater that artificially restrained itself - potentially an economy like South Africa’s under apartheid.

Pascoe explains that the current political tragedy is that the Labor and Liberal parties are running away from the great success story of Australian migration. Instead of explaining and championing migration’s crucial contribution to the Australian economy’s long, golden summer of growth, Gillard and Abbott, West and Morrison, by sly deed and innuendo are portraying our raiding of other nations’ investment in people as something thoroughly undesirable; at best a necessary evil that must be as limited as much as possible.

My clients came to me with the following query…

“My spouse and I are thinking of renting out our current PPOR and buy another property to live in. The median rent in our area is currently around $300 per week. We only owe $100,000 from the bank. What tax concessions can we claim when we convert our home to rental? Is it better to just sell rather than rent it out?"

Read on to find out more...