New COVID-19 payment for South Australia: What you've missed this week
South Australia offers COVID isolation payment, and property market interest continues its upward trajectory.
Here are five things you might've missed this week.
Tax reform could be Olympic gold for government coffers
Analysis from The Tax Institute suggests that GST reform could see Australia collect $750 million from international visitors during the Olympic games in 2032.
The immediate benefits to the Australian economy from the Sydney 2000 Olympics were estimated at a $6-7 billion addition to GDP that year.
In today's dollars, that's approximately $9.75 - $11.3 billion.
"If all of that money included GST and about half was spent by international visitors, then we have raised millions of dollars in extra GST from those tourists," says The Tax Institute's director of tax policy and advocacy, Andrew Mills.
If you combine that figure with tax reform, that figure could be much higher.
"Only about half of our GDP is currently subject to GST and our rate of GST is well below the rest of the world. If we increased the GST rate to 15%, like New Zealand, and applied it to all spending, suddenly we could collect around $750 million in potential GST revenue from international visitors. That number will increase in the years to 2032."
Victorian businesses get cash boost
Eligible Licensed Hospitality Venue Fund recipients in Victoria will receive an additional $4200, taking the total payment to $7200, while Business Costs Assistance Program recipients will receive $2800, bringing the total grant to $4800.
"We're making sure the businesses most affected by the lockdown have a chance to emerge from it in decent shape, so they can continue to play their vital role as employers and drivers of Victoria's economy," says Minister for Industry Support and Recovery Martin Pakula.
Businesses that didn't apply or qualify for the payments during May/June lockdown are able to apply for the July lockdown support payments and will be considered outside of the automatic top-up process.
More information can be found at business.vic.gov.au
What affordability crisis?
A Finder survey of 1015 respondents has found that even with steep increases in average prices in most capital cities, almost 3 million Aussies are planning to purchase a property in the next six months.
Seven per cent of Australians are looking to buy property as an investment, while 7% plan to live in the home they buy.
The research found that more than a quarter of Millennials are in the market for a new home or investment (27%), compared to 17% of Gen Z and 9% of Gen X.
This is despite an ongoing affordability crisis.
A discussion paper from Per Capita, Generation Stressed, estimates that the lifetime cost of owning a home has increased 130% over two generations.
For a Silent Generation family buying in 1970, the average repayment cost over the course of the mortgage was 11.2% of their gross income, while a Generation X family who bought in 2000, and have approximately nine years left to go on their mortgage, are estimated to spend 25.5% of their gross income on servicing mortgage debt.
Aussies priced out of health insurance
Nearly half of Australians across Sydney, Melbourne and Brisbane can't afford private health insurance but would like to have it, according to research from Compare Club.
And having it may not be enough, with a fifth of Melbournians responding that while they they have private health insurance, they're unsure whether it fits their needs or budget.
The research also found that 77% of city dwellers across Melbourne, Sydney and Brisbane are confused about what their insurance actually covers.
COVID-19 payment rolled out in South Australia
South Australians who need to get tested for coronavirus and isolate due to the current outbreak, and who do not have access to paid leave or other income support, will be eligible for a one-off $300 COVID-19 cluster isolation payment.
"If you've missed a shift or cancelled a client booking because you were required to isolate while awaiting test results, you may be eligible for this payment," says Minister for Human Services Michelle Lensink.
The payment "will be particularly welcome for anyone not eligible for Commonwealth COVID-19 disaster payments, including essential workers exempt from lockdown, international students and those who lost less than eight hours of work," she says.
To apply for the $300 payment go to covid-19.sa.gov.au or call (08) 8226 2500.
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