Mr. Burke MP explains income tax claw back by investment property—put in $280,000—get back $4.66 Million

Image: Tony Burke. AAP

This is Mr. Tony Burke— Federal MP— he owns 4 investment properties and 4 rent slaves— shackled to him by the necessity of housing— so we can ask “the question is” of this dude because he knows all about it—and whether he likes it or not he is going to tells us— all about housing unaffordability.

Using his 4 investment properties and his 4 rent slaves Mr. Burke explains income tax claw back by investment property—put in $280,000—get back $4.66 Million and it is as “safe as houses”.

After you understand why housing unaffordability is as bad as it is today with Mr. Burke’s help you will understand that the people who govern the country—the governing class— are in fact— a parasitic class— parasiting off the nation’s less well off and it is this parasitic behaviour that has led to today’s extreme housing unaffordability crisis with its consequent economic damage.

So what’s going on Mr Burke —with housing unaffordability I ask you on behalf of the Nation’s young people

Why is it— that millions of young Australians cannot afford to buy a home of their own home— any more—I ask you loud and clear.

Why is the little girl who just started school wanting to be a nurse like her mother— why is she ear marked for rent slavery when she grows up— or the little bloke who wants to be a teacher or of some such salaried living.

And Mr. Burke do you think these kids know that they are in a real live game of Monopoly with the likes of you, Albanese, Littleproud, Tehan, Pliberseck, Taylor and the rest of Parliament’s Property Investor Politicians .

These kids are rent slaves and you all know it — they just haven’t arrived there yet—you and the property investor politician knows that this is the outcome for these children— if the investor tax concessions remain.

You Cowards of Canberra—targeting Australian schools children and young people for rent slavery and you’ve been doing so for decades—greedy and gutless beyond belief but you are not alone!

No Sir— you are not alone—more than 50% of Australian Federal politician are and have been housing investors while in office—an extreme conflict of interest wouldn’t you agree Mr. Burke?

And Mr. Burke—upwards of 50% of federal politicians owning investment properties is clear corruption of the normal functioning of parliament. Investment property self interest has for decades—neutered the parliaments ability to address housing unaffordability, declining home ownership rates, rent slavery, mega mortgage poverty, rising homelessness, sticky inflation, the house price to income ratio rocketing past 12 aimed directly at Australia’s working class children etc.

The parliament has gone missing on these grave issues Mr. burke—and where is the Parliament Mr. Burke —the Parliament is at the house auction— isn’t that right Mr. Burke?

And what’s going on — Albanese, Patterson, Tehan, Littleproud, Taylor — you, like the rest of the property investor politicians who sit in parliament today and the thousand that have set sat in parliaments past— are the greatest cowards of all time —you have targeted working class young people for rent slavery and watched housing unaffordability eat its way up the salary pile as your investment properties grew fatter.

It beggars belief that you could be so odious as to bludge off those who can least afford it— what is wrong with you people?

Young Australia— those gutless people have wiped out the Lucky Country and replaced it with the “Rent Slave State of the Au”.—How dare they—  and you get blamed for it by these Creeps—too much smashed avocado on toast for breakfast or some such nonsense. The entire thing is an idiot saga— but so profoundly damaging both socially and economically.

Mr Burke owns four investment properties— so that is four families that he has forced into rent slavery or onto the river bank.

But Mr Burke is a snivelling lightweight when it comes to investment property— The Victorian State Liberal MPs—this dude here—Mr. Southwick ownes or part owns 17 investment properties and—this other dude—Mr. Hodgett ownes or part owns 18 and these two dudes actually step over the homeless—the fallen rent slaves on Swanston Street—everyday on their way to the Victorian Parliament.

Image: Mr. Southwick. ABC — & Mr. Hogett.

These two super greedies may well be snivelling lightweights as well because MP investment properties can be hidden in trust funds— that’s right— every single Australian politician— State or Federal —may be investment property owners—all buried in trust funds.

So what’s going on Mr Burke I ask you loud and clear— and you will answer— with my help.

What’s going on is this— the Australian housing market has been turned into an onshore tax haven for high salary earners like yourself—underpinned by rent slavery and at the expense of housing affordability for the Nation’s working class and their children.

That’s the guts of it Mr. Burke isn’t it?

And you are going to tell us exactly how it works in about a minute and a half— but first how this shocking assault on the Nation’s young people was carried out by the Cowards of Canberra.

The cowards— Hawke and Keating— punched the Nation’s young people in the guts in 1987 with the addition to negative gearing —of the second investor tax concession— the 2.5% depreciation allowance on new build property investments— renovations included (see Figure 1 Tax Concession Level 2, house price inflation accelerates with the added concession) —and these other two cowards —Howard and Costello in 1999 strapped their jack boots on and kicked the Nation’s less well off children in the head good and proper by allowing the 50% capital gains tax discount on property investments (see Figure 1 Tax Concession Level 3, house price inflation skyrockets with the added concession).

What makes these people such cowards is that the 1991 Census picked up that the Hawke and Keating second concession sent home ownership rates into instant decline —see this graph here—yet the concession was left in place by those two cowards.

And then along came the cowards Howard and Costello and gave investors their most powerful concession in full knowledge of the continuing decline in home ownership rates recorded by each and every subsequent Census since 1987

These four cowards knew then and there—that housing unaffordability had started eating its way up the salary pile because of the investor concessions and what did they do—they rushed off and bought investment properties that’s what. Keating was still buying investment properties as late as 2019.

These four cowards along with their parliaments traded housing affordability for rent slavery— making housing a failsafe tax minimisation investment for high salary earners like themselves and they trampled on the wellbeing of the working class and the greater economy to do it —too gutless to take their chances at investment start-up they bought the no risk investment property— that they legislated into being— replete with its rent slave.

And these cowards set in train the growth of the biggest housing bubble the world has ever seen on a GDP per capita basis and the bubble overvaluation is pushing half GDP—This is economic vandalism on a grand scale—The Nation is in the hands of property invested economic dim wits—it is unreal.

And isn’t it a fact Mr. Burke—that just 8% of the population are housing investors—who own 50% of all Australia’s residential housing stock, that is—the 2 million or so houses they live in and the one in every three houses across the land they own as tax subsidised investment properties with its shackled rent slave?

And Mr Burke you are  going to tell us all right here and now —how this onshore tax haven works—and show young Australians exactly why they have not got a hope in hell of owning their own home with the likes of you and that parasitic scheme on the loose.

Mr Burke is well paid by the Australian people as a Federal Member of Parliament who oversees several ministries, but even with just one ministerial loading— his salary is $478,000 and the tax he would be obliged to pay without his investment property concessions would be $181,000.  His take-home pay would be $5,700 per week and his income tax would be $3,484 per week but with his investment properties he can get all this income tax back and then some and he doesn’t even have to pay the mortgage himself — his rent slaves cover most of this as he will show us. $5,706 per week is not enough for this dude he wants the lot—Now I don’t like it any more than you but he wants it and so he gets it.

Mr. Burke’s investment properties may well be up market like the investment property Albanese sold for $1.7M a couple of years back but we will assume the properties are just average valued houses at about $1M 45 thousand a piece.

We assume Mr. Burke bought his houses last year, he may have bought them years ago and he would be better off if he did— and like most people he put up a 20% deposit and took out a 30 year mortgage and pays an interest rate of about 5%.  

So his annual mortgage repayments are $54,000 per investment property, of this the rent slave— paying the average weekly rent—pays $41,000 leaving $13,000 that he has to pay himself. This is the negative gearing difference that Mr. Burke can reduce his taxable income by per house and with four houses he can deduct $52,000 from his taxable income.

With negative gearing deductions Mr. Burke reduces his annual income tax from $181,000 to $157,000 minimising his tax by $24,000 which is $6,000 per house reducing his personal payments into his own mortgage to just $7,000 per year per house.

Of Mr. Burke’s $54,000 annual mortgage repayments per year per house— his rent slaves pay 76% of them, the tax payer pays 11% through negative gearing rebates and he pays just 13 % of his own mortgages.

Mr. Burke pays just 13% of his own mortgages and receives 100% of the increase in property value plus the loan principal paid down by the rent slave and the tax payer—just let the sink in— 13%— what an abuse of less well off Australians.

But young Au there is more.

If Mr. Burke’s houses or any renovations done on them are less than 40 years old — he can deduct a further 2.5% of the build or renovations costs from his salary with the depreciation allowance— just like negative gearing— and so the taxpayer then pays more of his mortgages for him.

So if Mr. Burkes houses were new builds then he could deduct with four of them $100,000 more from his taxable income and at this point his mortgage repayments would be entirely paid by his rent slaves and the tax payers.

But Kids —there is still more believe it or not— how greedy are these people?

The big gun Mr. Burke— the 50% capital gains tax discount — aka the Housing Bubble Machine —isn’t that right Mr. Burke?

The average valued investment property is doubling in price every 7-10 years and so to keep it simple the price inflation is about $104,500 per year.

Of this $104,500 — $52,000 is quarantined from taxation by the capital gains tax discount that goes straight into the pocket of Mr. Burke the moment he sells the property. Of the other 50% this is capital gains taxed at Mr. Burke’s 45c in the dollar so he pays $23,500 in tax on the increase in value at the moment of sale— so Mr. Burke pockets $81,000 per year per property which he will collect the moment he sells them.

With 4 investment properties he clocks up $324,000 per year which recoups his $157,000 yearly income tax with $167,000 to spare and— this is what property investment is all about isn’t it Mr. Burke?

For the Back Bench MP being paid $307,000 owning a single average valued investment property he or she recoups $81,000 of the $98,000 income tax on a yearly basis when the property is sold. This works out to be $17,000 in yearly tax which equates to a tax rate 5.6 cents in the dollar. Not bad—Rent slavery is extremely efficient at income tax recouping wouldn’t you agree Mr. Burke.

But Kids —there is yet more, lots lots more!

At the time of any sale of his properties not only does Mr. Burke collect the profit on the sale he also pockets the proportion of the paid down loan principle where 76% of this was paid for by his rent slave.

So if he were to hold his properties for 10 years and keeping rent and interest rate constant then per property—the rent slave would have paid $410,000 in rent—of this $114,000 would have gone into paying down the principal loan and $296,000 to the bank in interest on Mr Burkes behalf. 

And if Mr. Burke sold all 4 properties after the doubling period of 10 years he will have recouped every cent he paid in income tax over the 10 years i.e. $1.57M plus the $1.67M excess of tax plus— the $600,000 in paid down loan principal plus he will redeem his $800,000 deposits and $200,000 stamp duties paid at the time of purchase—the rent slaves will have paid Mr. Burke $1.64M — $456,000 paying down Mr. Burke’s loan principal and $1,184,000 to the bank in interest on Mr. Burkes behalf— Mr. Burkes input over the 10 years for the 4 properties would be $280,000 and the taxpayer $240,000. Mr. Burke’s input would be even less if the depreciation allowance on his properties were available to him.

Young Australia— this is really important and so I will restate it—even though the four investment properties cost $4.4M to buy i.e. the sum of the price and the stamp duty per property but because the bank financed the purchases and the rent slaves and taxpayers pay 87% of the mortgages, Mr. Burkes would have paid out of his own pocket just $280,000 over the 10 years.

That is shocking truth of it all—for Mr. Burkes $280,000 net input into the scheme—the rent slaves walk away with absolutely nothing after paying Mr. Burke $1.64 M in rent, the bank walks away with $1.2M for financing the scheme, the ATO receives $700,000 net and Mr. Burke walks away with $4.66 M including his deposits and initial stamp duty— And the parasitic behaviour of Mr. Burke and the parasitic nature of the rent slave tax redemption scheme is plain for all to see—the very foundation of this scheme is rent slavery Mr. Burke which you and the rest of the Cowards of Canberra know full well—isn’t this right Mr. Burke?

And this tax minimisation/redemption scheme is slick—it doesn’t matter where along the mortgage term the investment properties are sold what matters is how much the price has inflated—5 years—10 years— it doesn’t matter, at the sale the investor pays out the loan balance and pockets the inflation and this has happened million of times since Hawke and Keatings’ depreciation allowance.

Investors—including the houses that they now live in, the 6.1 million bought the 4.1 million sold and the 1.8 million added to the 3.3 million presently owned as investment properties—investors have had their hands on over 10 million properties at one time or another since the depreciation allowance. There are only 11.3 million dwellings in Australia and investors have purchased on average 16,666 investment properties per month —since the concession of the cowards Howard and Costello— and rent slaves have been forced to carry this shocking assault on housing affordability every inch of the way as the investor demand driven housing bubble has grown bigger and bigger driving housing unaffordability to the crisis level it is now at—isn’t this right Mr. Burke?

So that’s it kids— Mr. Burke and his cohorts and cronies including the banks enjoy the greatest onshore tax haven the world has ever seen— underpinned by rent slavery and these bludgers don’t even have to go to the Cayman Islands.

And these are the facts of the matter are they not Mr. Burke—admit to it if you have got the guts?

And all of this damage to the Lucky Country, to the Australian way of life and to our working class children and young people— for the income tax benefit of just 8% of the population—Mr. Burke.

And kids to shine more light on just how gutless to the core these Cowards of Canberra are— the mirror image of the investment property market is the rental market, yet these cowards intervened in the investment property market— to their extreme benefit with 3 powerful tax concessions— as you now know— but to—maximise—the benefit of their investment properties, they insist and have insisted that there will be no intervention in the rental market by way of legislated rental restraint— i.e. no fair and just— counter balance intervention for the benefit of the less well off —Oh No!— Absolutely Not!— that working class market must be and will be a free market for the benefit of the governing class—they insist on it— and there you have it— unbridled rent slavery with ever increasing rent.

It is grotesque that those who govern would prey upon the governed with such indifference, greed, economic vandalism and immoral abandon—where the necessity of housing— leaves those preyed upon without choice but to be preyed upon.

The behaviour of those who govern Australia is profoundly confronting when it comes into view— and the damage they have done to Australia’s young people and the less well off over the decades is incalculable— and just plain unforgivable.

Young Australia —one thing is certain— if these tax concessions and free market rents were targeting the property investor politicians’ children—they would have been abolished in an instant long ago along with legislated rental control of about 20% of the mortgage.

And a case in point, Mr. Taylor on behalf of the Liberal and National Parties states that they do not support any changes to negative gearing or the capital gains tax discount— this is code for— “Your working class kids are going to be rent slaves for my kids and our better off kids”. This is an accurate economic translation of your position isn’t it Mr. Taylor?

The integrity of the likes of John Gorton, Malcolm Frazer and Doug Anthony sadly does not reside with those political parties anymore—rent slavery would have been as odious to those men as slavery was to Lord Mansfield so long ago —they would not have stood for it for a single second Mr. Taylor.  

Young Australia— you must vote out of office —every single sitting member of the Australian Federal Parliament at the next election—it is your civic duty— and your only chance to resurrect the Lucky Country—the welfare of the Nation’s children rests in your hands—clear the parliament of these greedy odious people that are happy to rent enslave you and less well off children —you vote them out along with their rent slave tax concessions— vote independent and insist on legislated rent limited to 20% of the mortgage then you can save and buy your own home—the end of rent slavery and the Lucky country resurrected.

By the way— if Treasurer Chalmers reduces the 50% CGT discount to 33% then Mr. Burke’s annual investment property inflation profit of $324,000 per year would reduce to $291,973 still about double his income tax. It will do nothing to reduce house prices or housing unaffordability nor will it stop rent slavery. Mr. Chalmers appears not to understand how rent slavery is crucial for investment property capital gain.

Young people, visit tqiink.com— “the question is inkorporated” online newspaper— it is set up for you— and for the fight to the resurrect the Lucky Country—that forgotten place of a “fair go” for all its citizens. I have written articles to aid and abet this fight— join the fight— hit the red “the question is” button below and you can ask the questions of Mr. Burke, Governor Bullock and the members of the Federal Government and governing class with more to come—and  make no mistake unless you engage nothing will change and you and your kids will be rent slaves to the likes of Burke, Albanese, Patterson, Tehan, Littleproud, Pliberseck, Taylor and the rest of them—for generations to come—so hit the red button and get as many of your friends to hit it as well—you must make a stand or you will be continually walked over by these odious rent slavers.

The mum and dad investor are not to blame for this— most will be going in to bat for their kids or their grandkids— the responsibility of the acute housing unaffordability crisis, economic damage and housing bubble rest entirely with those who govern Australia.

All the best kids and start screaming loud and clear from the roof tops for rent restrictions to 20% of the mortgage put an end to this scheme or you and your children will live impoverished by ever increasing rent or be on the river bank—make no mistake in this.

And the best way to force the States to restrict rents to 20% of  the mortgage and or “valued at” mortgage for owned outright investment propertise is for the Federal Goverment to legislate withholding Goods and Services Tax from the States until they comply. So don’t be told Nation wide legislated rent restraint in not doable.