Good, Simple Ideas and Politicians don't mix. Oxymoron more like it.

[QUOTE=Kato]Such a simple idea... Let's successful Aussies buy a high end HSV / FPV without the 33% LCT tax.

I'm sure it would sway a lot more people into them too.[/QUOTE]

And Ford / Holden would just increase the price to suit and you wouldn't be paying any less because that is the price people are prepared to pay to have one.

[QUOTE=urabus]

2) if I am complacent and incompetent in my business and dont adapt with the times will the government come and help me out? I dont think so. The car industry should not be any different.

[/QUOTE]

Thank you mate, you saved me the time. If you are too incompetent to run a god damn business, you should not have one. Its simple, unfortunatley peoples jobs are at stake.

[QUOTE=BlackSTi]And Ford / Holden would just increase the price to suit and you wouldn't be paying any less because that is the price people are prepared to pay to have one.[/QUOTE]

I disagree. Even if they slashed 10k off a GTS out of the 20k they have on the tax, thats still a 10k profit going to holden, but the consumer has notice a reasonable decrease in purchase price and will be more inclined to purchase it.

And if all those 260,000 became unemployed the dole bill would be at least 55 million per week, but then you could probably double that because the govt isn't receiving any tax from the workers, then of course you could probably double that again because they receive no tax from car sales either, there is more flow on than you could imagine, much cheaper to bail them out at the end of the day.

The new car market has been heading for disaster for a couple of years now but for some reason everyone stuck their heads in the sand and ignored it.

The car market has boomed for years all on the back of rising house prices and easy credit. Suddenly people saw their houses worth more than double and used the equity to get into a new car. Great for people who got in the house market early enough.

Then we got the situation where to buy a home you had to spend an average 60% of your income instead of 30%! Somethings got to give, and for most it will be the new car. We now have a generation of people who can barely afford their houses let alone new cars.

Rising house prices have ruined the economy, encouraging unsustainable growth levels around the world, people thought they were richer than they actually were and jumped on the easy credit bandwagon.

Its all about disposable income. If your pumping it into a house loan your not buying cars, boats, tv's, blah blah blah. end rant.

Luckily i got in early ;)

[QUOTE=Kato]Such a simple idea... Let's successful Aussies buy a high end HSV / FPV without the 33% LCT tax.[/QUOTE]

And if you had bought a brand new one in the last 2 years and suddenly watched your resale value drop by $15k overnight you would not be pissed off. Then you have people upside down in their finance (i.e. owe more than the cars worth), then they prang it and the insurance doesn't cover the loan. Then they dont have enough equity in their house to cover the shortfall. epic fail.

[QUOTE=Pimpreza]And if all those 260,000 became unemployed the dole bill would be at least 55 million per week, but then you could probably double that because the govt isn't receiving any tax from the workers, then of course you could probably double that again because they receive no tax from car sales either, there is more flow on than you could imagine, much cheaper to bail them out at the end of the day.[/QUOTE]

Agreed this is a problem however WA's unemployment rate for the june quarter was 2.2% The natural rate of unemployment (i.e. those who are actually employable) is about 4%. WA alone could consume a lot of those people.

Dont forget that it is not like someone is going to turn a light switch off. I.e. it will be a gradual shut down. It is not like all of those people are going to become unemployed overnight. Unless the manufacturers are going to stockpile cars there is going to be a downturn in production and hence employment anyways.

As for the payout each week I am not sure of the numbers but they still have to eat (tax) drop the kids at school (fill their cars up) smoke their cigarettes (tax) etc. It is all a vicious circle and the payout is not as bad as it seems.

At the end of the day the economy needs too and despite government interferrance it will eventually correct itself. I dont understand why the government is going to keep propping the industry up when in another 10 years we will be going through all the same problems.

Brendon

[QUOTE=urabus]
Agreed this is a problem however WA's unemployment rate for the june quarter was 2.2% The natural rate of unemployment (i.e. those who are actually employable) is about 4%. WA alone could consume a lot of those people.

Dont forget that it is not like someone is going to turn a light switch off. [/QUOTE]

Brendon I dont like to be the bearer of bad news but the light switch is being dimmed very quickly right now and I expect it to turn off pretty quickly at the rate we seeing things decline right now. I have a lot of employees who are for the first time in a long time very concerned about where there next pay check is coming from. Stay tuned because its going to be lack back to the future 90's style.

[QUOTE=American Dave]Brendon I dont like to be the bearer of bad news but the light switch is being dimmed very quickly right now and I expect it to turn off pretty quickly at the rate we seeing things decline right now. I have a lot of employees who are for the first time in a long time very concerned about where there next pay check is coming from. Stay tuned because its going to be lack back to the future 90's style.[/QUOTE]

I know that people like the exploration drillers have been very quiet. There have been 3 nickel mines in Kal shut down in the last month. No doubt more to follow. But my argument is that any good people will be swept up by the gold mines et al and the ones that cant find a job probably only had one on the mines because of the chronic labour shortage and probably should not have been there in the first place. We are doing some work in Port Hedland and it took seven (7) weeks to book a hilux ute into the toyota dealership to get it serviced. Hopefully the downturn will bring things like this back to reality.

If you look at the stock market and also the exchange rates etc you need to go back 5 years to 2003 to find some sort of parity. The stock market was at about 3200 points. Housing market has not caught up yet but hopefully that will follow.

I am sorry but maybe it will be a really good reality check for these guys that have gone out and hocked themselves up to the eyeballs and running around with extravagant lifestyles and super flash cars / boats that they have bought on credit and cant afford. A lot of young people have never been through a recession before and believe that if they get pissed off in their current job they can either a) hold their employer to ransom or b) go and get another job somewhere else that will no doubt be paying more.

As an employer I think the wheel is finally starting to turn and by christ am I going to get my retribution on smacktard employees that thought they could tell me how to run my business. They will be the first ones to go!

[QUOTE=urabus]As an employer I think the wheel is finally starting to turn and by christ am I going to get my retribution on smacktard employees that thought they could tell me how to run my business. They will be the first ones to go![/QUOTE]

Amen to that.

[QUOTE=urabus]



I am sorry but maybe it will be a really good reality check for these guys that have gone out and hocked themselves up to the eyeballs and running around with extravagant lifestyles and super flash cars / boats that they have bought on credit and cant afford. A lot of young people have never been through a recession before and believe that if they get pissed off in their current job they can either a) hold their employer to ransom or b) go and get another job somewhere else that will no doubt be paying more.

As an employer I think the wheel is finally starting to turn and by christ am I going to get my retribution on smacktard employees that thought they could tell me how to run my business. They will be the first ones to go![/QUOTE]

SO true. Which them luck in a year time when they can't demand the money they have been asking